The March quarter update revealed little that was surprising for Credit Suisse. All measures being undertaken are designed to preserve the balance sheet, which remains strong.
Reflecting updated guidance, the broker pulls back earnings for the next two years. The broker acknowledges there is no the short-term catalyst and the company’s commodity exposures are, with the exception of manganese, under pressure.
Still, the price appears attractive enough to maintain an Outperform rating. Target is reduced to $2.90 from $3.10.
Sector: Materials.
Target price is $2.90.Current Price is $1.99. Difference: $0.91 – (brackets indicate current price is over target). If S32 meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges – negative figures indicate an expected loss).
