The company has reported recoveries in the December quarter to date of 60%. Credit Suisse notes, importantly, in early November recoveries averaged 68.5% over a five day period. This is a major step towards the long-held target recovery of 75%.
Still, the macro environment is the largest determinant of the share price in the near term and the broker envisages risk of further price and sales pressures. Outperform rating and $0.60 target maintained.
Target price is $0.60.Current Price is $0.31. Difference: $0.29 – (brackets indicate current price is over target). If PLS meets the Credit Suisse target it will return approximately 48% (excluding dividends, fees and charges – negative figures indicate an expected loss).