Credit Suisse believes the company has paid a fair price for 50% of the Super Pit based on the current reserves and the assumption that the current constrained production and elevated costs will improve.
The broker suspects management’s reluctance to provide more than just 2020 guidance reflects uncertainties identified during due diligence, or perhaps the lack of visibility around future production.
Rating is upgraded to Neutral from Underperform and the target is steady at $9.60.
Sector: Materials.
Target price is $9.60.Current Price is $9.85. Difference: ($0.25) – (brackets indicate current price is over target). If NST meets the Credit Suisse target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
