The company’s balance sheet is the strongest in Citi’s coverage, courtesy of having negligible debt. The broker likes the combination of relative resilience in mining, coupled with optimism regarding the pace of recovery in energy from 2021.
The broker expects mining will be underpinned by the iron ore mine replacement cycle into FY22. Rating is upgraded to Buy/High Risk from Neutral and the target reduced to $14.35 from $15.90.
Sector: Capital Goods.
Target price is $14.35.Current Price is $10.58. Difference: $3.77 – (brackets indicate current price is over target). If MND meets the Citi target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).