S32 - UBS rates the stock as Downgrade to Neutral
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UBS believes the stock has run too hard for now and aluminium/alumina, metallurgical coal and manganese remain vulnerable to the correction seen in copper and iron ore.
The broker downgrades to Neutral from Buy. Target is raised to $3.25 from $3.00.
The stock is appreciated for its cash balance sheet and 20% free cash flow yield at spot prices but UBS would have liked to see more cash returns to shareholders, and remains concerns about operations at Illawarra and Cannington.
Target price is $3.25.Current Price is $3.29. Difference: ($0.04) - (brackets indicate current price is over target). If S32 meets the UBS target it will return approximately -1% (excluding dividends, fees and charges - negative figures indicate an expected loss)
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