Credit Suisse believes the headwinds to mining volumes are increasingly reflected in base case forecasts.
While reducing estimates for FY22 to take into account increases to cost of goods and deferring the timing for mining volume recovery, the broker emphasises this does not reflect any fundamental change in view.
The broker believes the market is underestimating the likely strength of a recovery in profit from the second half. Outperform maintained. Target is reduced to $15.66 from $16.47.
Target price is $15.66.Current Price is $12.59. Difference: $3.07 – (brackets indicate current price is over target). If ORI meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).