The company has updated on June quarter production, downgrading guidance to 45-50,000t from 50-55,000t. The reason, UBS notes, is the delay to the production improvement plan.
Product split is unchanged and the eventual lift in coarse flake production is one of the keys to better margins and cash flow, given current price differentials, the broker adds.
UBS maintains a Buy rating and reduces the target to $2.40 from $2.55.
Sector: Materials.
Target price is $2.40.Current Price is $1.06. Difference: $1.34 – (brackets indicate current price is over target). If SYR meets the UBS target it will return approximately 56% (excluding dividends, fees and charges – negative figures indicate an expected loss).
