MND – UBS rates the stock as Downgrade to Neutral from Buy

UBS updates its database for iron ore capital expenditure, now estimating total investment in Western Australia could be around US$21bn. This expenditure is expected to be delivered through FY19-22.

The broker downgrades Monadelphous to Neutral from Buy on valuation grounds as the share price has increased around 40% over the past 12 months. Target is steady at $19.

The broker also updates FY21/22 forecasts for earnings per share, reducing FY21 by -10% and increasing FY22 by 5%, while re-profiling iron ore construction forecasts, given increased visibility.

Sector: Capital Goods.

Target price is $19.00.Current Price is $18.46. Difference: $0.54 – (brackets indicate current price is over target). If MND meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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