S32 – Credit Suisse rates the stock as Upgrade to Outperform

Credit Suisse lifts the rating for South32 to Outperform from Neutral and raises the target price to $3.60 from $3. It’s anticipated the global aluminium market will head into protracted deficits from 2022. Its also felt being ESG-compliant is a big plus for the company.

The broker believes aluminium should be in high demand for its role in electricity transmission, solar projects and light-weight. Credit Suisse forecasts the aluminium price to climb to US$1.20/lb next year.

The analyst expects a free cashflow contribution from the company’s aluminium division of 44% in 2022, or 62% if the alumina
refineries are included.

Sector: Materials.


Target price is $3.60.Current Price is $2.91. Difference: $0.69 – (brackets indicate current price is over target). If S32 meets the Credit Suisse target it will return approximately 19% (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 →