Following Evolution Mining’s softer 2Q results, Credit Suisse lowers its FY22 EPS forecast by -9% and adjusts its target price to $3.70 from $3.80. This reflects the lower 2Q production and reduced Red Lake forecasts.
The Neutral rating has been maintained on medium-term growth prospects though the broker sees better value in Newcrest Mining ((NCM)) and an attractive free cash flow yield on offer at Northern Star Resources ((NST)).
Target price is $3.70.Current Price is $3.46. Difference: $0.24 – (brackets indicate current price is over target). If EVN meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).