Credit Suisse believes iron ore prices will peak in the current quarter and downgrades to Neutral from Outperform, despite finding the company difficult to fault.
That said, the broker finds little reason to sell the stock, particularly with a $0.22 dividend to come in August. However, it is likely the share price will come under pressure if iron ore prices ease.
The company reported a strong finish to FY19 with record June quarter production. Target is reduced to $8.00 from $8.20.
Sector: Materials.
Target price is $8.00.Current Price is $8.20. Difference: ($0.20) – (brackets indicate current price is over target). If FMG meets the Credit Suisse target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
