Morgans assesses a good end to FY21, with fourth quarter results coming in ahead of estimates at Worsley, Cerro Matoso and Cannington. Strong volumes are considered to have helped in containing costs across the business.
However, an impairment at Illawarra and a post-sale write-down for South African Energy Coal of -US520m and -US$160m, respectively, are set to drag on the FY21 result, points out the analyst.
The broker maintains its Hold rating and lowers its target price to $3.15 from $3.25.
With some recent share price weakness, Morgans is on the lookout for an attractive entry point.
Target price is $3.15.Current Price is $2.84. Difference: $0.31 – (brackets indicate current price is over target). If S32 meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).