UBS rates the stock as Buy –
UBS assesses a mixed March quarter production report from South32 with a beat versus expectations for lead, silver and manganese, while met coal and thermal coal were a miss.
Management maintained production guidance though increased cost guidance due to adverse exchange rate movements and higher prices for raw materials. As a result, the broker lowers its target price to $6.00 from $6.30.
Nonetheless, high commodity prices are driving exceptional cash flows, notes the analyst.
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 UBS target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
