FMG – Citi rates the stock as Neutral

By Broker News | More Articles by Broker News

FY19 results were slightly ahead of Citi’s estimates. The company has provided no change to guidance with costs expected to be in the range of US$13.25-13.75/wmt.

If steel prices hold up, Citi assesses mill margins will expand sharply and the benchmark 62% iron ore will be in higher demand versus the 58% grade. This keeps the broker on a Neutral rating with an $8.00 target.

Sector: Materials.

Target price is $8.00.Current Price is $7.39. Difference: $0.61 – (brackets indicate current price is over target). If FMG meets the Citi target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

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 →