After incorporating the development of the Kami Project into forecasts (which underpins tripling of production by 2026), Macquarie raises the price target to $6.80 from $6. The analyst believes the company should be able to fund the organic growth.
The broker’s FY21-24 earnings (EPS) estimates are unchanged, while FY25 forecasts increases by 6% on initial production and shipments from Kami. FY26 EPS and beyond increase by 30-45% on a ramp-up in Kami production. The Outperform rating is retained.
Target price is $6.80.Current Price is $5.81. Difference: $0.99 – (brackets indicate current price is over target). If CIA meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).