Alumina Ltd has been upgraded to Buy from Neutral as part of a sector stress-test undertaken by commodity analysts at Citi. Taking guidance from global interest rates, Citi’s view is that 2020 will be a disappointing year for the sector overall.
Citi considers Alumina Ltd a sector stand-out given the company’s ability to pay what is described as a “reasonable dividend”, even in an environment of depressed alumina prices.
Sector: Materials.
Target price is $2.30.Current Price is $1.84. Difference: $0.46 – (brackets indicate current price is over target). If AWC meets the Citi target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
