Macquarie has marked to market for March quarter bulk commodity prices and incorporated provisional pricing adjustments. Recent strong share price moves have eroded value upside, although the broker retains a preference for iron ore miners on significant FY22 earnings upside at current spot prices. Recent declines in alumina and coal prices have increased downside risk for relevant miners.
Outperform retained for Alumina, target rises to $1.90 from $1.60.
Target price is $1.90.Current Price is $1.41. Difference: $0.49 – (brackets indicate current price is over target). If AWC meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).