DCN – Macquarie rates the stock as Outperform

The company has updated the outlook for the second half. The limited availability of equipment has meant reduced FY19 guidance, at 150-160,000 ounces versus 180-210,000 ounces.

Macquarie lowers its production estimates but retains a positive longer-term view. The company notes mine-to-mill reconciliation has been strong and mining dilution from both underground and open pit remains better than the estimates from the feasibility study.

Outperform rating maintained. Target is reduced to $3.00 from $3.10.

Sector: Materials.

Target price is $3.00.Current Price is $2.33. Difference: $0.67 – (brackets indicate current price is over target). If DCN meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →