STA – Morgans rates the stock as Add

Morgans assesses the company is now fully funded for the Coburn project development, following a successful bond issue of US$60m and capital raising $122m.

While the equity raising at 20.5cps was below the broker’s estimates, the dilution is offset by increasing commodity price forecasts. The Add rating is maintained and the target price is increased to $0.52 from $0.47.

Sector: Materials.

 

Target price is $0.52.Current Price is $0.21. Difference: $0.31 – (brackets indicate current price is over target). If STA meets the Morgans target it will return approximately 60% (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 →