FMG – Macquarie rates the stock as Outperform

Macquarie expects the proceeds from the new US1.5bn senior unsecured note issue will be used to repay a -US$750m facility due in 2022. The balance is expected to help fund capex for Iron Bridge while also maintaining a 80% dividend payout ratio.

The Outperform rating and $25.50 target are unchanged.

Sector: Materials.

 

Target price is $25.50.Current Price is $19.15. Difference: $6.35 – (brackets indicate current price is over target). If FMG meets the Macquarie target it will return approximately 25% (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 →