STA – Morgans rates the stock as Add

Strandline Resources is approaching a final decision on its long-life Coburn mineral sands project in WA, which th broker describes as world-class. The stock offers a compelling capital growth prospect for investors willing to tak on project risk, the broker suggests.

On a de-risked basis the broker values the stock at 59c, but for now has ticked its target down to 35.9c from 38.4c, retaining a Speculative Buy rating.

Sector: Materials.

Target price is $0.36.Current Price is $0.27. Difference: $0.09 – (brackets indicate current price is over target). If STA meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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