Overall production was better than Credit Suisse expected in the March quarter. Capital expenditure guidance has been reduced or deferred on the back of labour market tightness.
Working capital is elevated because of lower sales and the result of weather and shipment delays but some of this should unwind in the June quarter. Credit Suisse increases FY22 and FY23 net profit estimates by 2% and1%, respectively.
Outperform rating and $6 target unchanged.
Sector: Materials.
Target price is $6.00.Current Price is $4.46. Difference: $1.54 – (brackets indicate current price is over target). If S32 meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
