Macquarie has upgraded its FY20 and FY21 nickel price forecasts by 34% and 9% respectively to incorporate the early reinstatement of the nickel ore ban. This leads to a 266% increase in forecast FY20 earnings for Western Areas.
Target rises to $3.60 from $2.70, Outperform retained.
Target price is $3.60.Current Price is $3.13. Difference: $0.47 – (brackets indicate current price is over target). If WSA meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).