SBM – Credit Suisse rates the stock as Outperform

September quarter production was solid and in line with budget, Credit Suisse observes. FY21 forecasts for 370-410,000 ounces are unchanged.

However, the broker was disappointed with the performance at Gwalia, albeit this is insignificant in the context of the long-term opportunity.

The main catalyst for the short term is a strategy update in late November/early December to define Gwalia’s optimisation and life-of-mine plan. Outperform rating and $4.40 target retained.

Sector: Materials.

Target price is $4.40.Current Price is $2.92. Difference: $1.48 – (brackets indicate current price is over target). If SBM meets the Credit Suisse target it will return approximately 34% (excluding dividends, fees and charges – negative figures indicate an expected loss).

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →