S32 – Citi rates the stock as Buy

As also reported yesterday, commodity analysts at Citi have responded to rapidly changing market dynamics for aluminium by raising their price forecasts.

Citi’s aluminium price forecasts are now for an average of US$2,475/t in 2021 and US$3,010/t in 2022, from respectively US$2,450/t and US$2,765/t prior.

Also noteworthy, the analysts believe spot aluminium prices can touch US$2,900/t in 0-3 month and US$3,100/t in 6-12 months as structural supply constraints spur on traders and speculators.

On revised forecasts, South32 remains a Buy while the price target moves to $3.80 from $3.50.

Sector: Materials.


Target price is $3.80.Current Price is $3.37. Difference: $0.43 – (brackets indicate current price is over target). If S32 meets the Citi target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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