The company has reduced FY20 net profit guidance to around $115-120m from $140m. This represents a -14-17% downgrade to prior UBS estimates.
The downgrade highlights the external risks associated with the African component of surface mining, and UBS expects investor sentiment will remain depressed in the near term.
However, end-market conditions remain favourable and the valuation supportive. Buy rating maintained. Target is reduced to $2.30 from $2.55.
Sector: Materials.
Target price is $2.30.Current Price is $1.70. Difference: $0.60 – (brackets indicate current price is over target). If PRN meets the UBS target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
