As Sierra Gorda in Chile nears completion, Morgans incorporates the recently acquired copper operations into forecasts, triggering a rating upgrade to Add from Hold. Moreover, shares offer an attractive dividend yield and there’s potential for new growth.
The Sierra Gorda acquisition is immediately earnings accretive for FY23 notes the analyst, who also cites the company’s superior diversification compared to ASX mining peers. The target price rises to $4.10 from $3.77.
Sector: Materials.
Target price is $4.10.Current Price is $3.83. Difference: $0.27 – (brackets indicate current price is over target). If S32 meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
