The company’s September quarter update revealed production was slightly below UBS estimates. Realised revenue was 11% above estimates.
The company is benefiting from the nickel price, which is up 25% since June. UBS is forecasting a flat nickel price into 2020, expecting US$7.50/lb.
The broker maintains a Sell rating as the stock is trading at a premium to valuation. Target is reduced to $2.80 from $2.90.
Sector: Materials.
Target price is $2.80.Current Price is $3.25. Difference: ($0.45) – (brackets indicate current price is over target). If WSA meets the UBS target it will return approximately -16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
