DRR – Credit Suisse rates the stock as Outperform

March quarter production was slightly ahead of expectations. The corporate focus is now on bolt-on royalty opportunities, Credit Suisse suggests, as South Flank is now 95% complete and on track for first production mid 2021.

The broker notes the share price has declined -10% since listing while the iron ore price has rallied around 45%. The broker assesses the dislocation is a re-rating opportunity and retains an Outperform rating. Target is $4.80.

Sector: Materials.

 

Target price is $4.80.Current Price is $4.18. Difference: $0.62 – (brackets indicate current price is over target). If DRR meets the Credit Suisse target it will return approximately 13% (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 →