As part of a trading update, Allkem has lifted pricing expectations for the Olaroz mine in Argentina by 14% for the current quarter, though this will be offset by weaker production in WA at Mt Cattlin. The latter is due to labour shortages and covid disruptions.
While the broker lowers its Mt Cattlin production forecasts, this has a minimal impact on valuation, given the short mine life remaining. The target price slips to $16.38 from $16.98, while the add rating is maintained.
Sector: 0.
Target price is $16.38.Current Price is $11.66. Difference: $4.72 – (brackets indicate current price is over target). If AKE meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).
