PLS – Macquarie rates the stock as Resume coverage with Outperform

The company has completed the institutional proportion of its $91.5m capital raising. The second portion is a strategic investment from CATL, a Chinese-based global manufacturer of electric vehicles and energy storage batteries.

Macquarie resumes coverage with an Outperform rating and $0.60 target and believes the funding will go a long way to shoring up the company’s working capital during the ramp up of Pilgangoora.

Furthermore, the broker expects the large, high-quality resource and processing infrastructure will provide expansion options that will deliver value.

Sector: Materials.

Target price is $0.60.Current Price is $0.36. Difference: $0.24 – (brackets indicate current price is over target). If PLS meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →