FMG – Credit Suisse rates the stock as Neutral

By Broker News | More Articles by Broker News

Fortescue Metals has made a strong start to FY21 with record shipments in the September quarter. The miner achieved 89% revenue realisation and finished the quarter in a solid cah position, the broker notes.

The broker believes the iron ore price will roll over at some point but while it remains resilient above US$100/t, the cash keeps flowing in for Fortescue and another big dividend is on the cards for February. The broker predicts $1.10 on a 6% payout and suggests the yield is enough to keep investors happy in such times of uncertainty.

Neutral and $16.50 target retained.

Sector: Materials.

Target price is $16.50.Current Price is $16.62. Difference: ($0.12) – (brackets indicate current price is over target). If FMG meets the Credit Suisse target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

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 →