It is the analysts view that the proposed acquisition of MOD Resources ((MOD)) is an attempt by Sandfire Resources to counter the short life left at its DeGrussa mine. The analysts see the proposed deal as value-accretive, with modest risk but substantial exploration upside.
What’s not to like about it?
Morgan Stanley points out MOD board approval comes with the propositon, with a target implementation date of October 2018. Overweight rating and $8.45 target. Industry view is Attractive.
Target price is $8.45.Current Price is $6.42. Difference: $2.03 – (brackets indicate current price is over target). If SFR meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).