Morgans assesses the FY21 result was in-line with expectations. The analyst questions whether being an early adopter would be a more efficient approach for the company rather than an innovator, (as a global technology leader in renewables and green products).
Given that Fortescue Future Industries (FFI) is contemplating investment in Afghanistan and Indonesia, it raises questions around how the company’s risk profile might change, ponders the broker. After adjusting for the FY21 result, the target falls to $19.20 from $19.40.
Mangagement expects investing aggressively towards the goal of becoming the first green iron ore producer will attract a material premium for its products.
Sector: Materials.
Target price is $19.20.Current Price is $21.32. Difference: ($2.12) – (brackets indicate current price is over target). If FMG meets the Morgans target it will return approximately -11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
