Macquarie adds a development scenario to its calculations for Capricorn Metals after tenure was granted for the Mt Gibson project, and upgrades to Neutral from Underperform.
The broker believes Mt Gibson represents a big growth opportunity and should diversify operational risk.
EPS forecasts fall -3%, -1% and -4% across FY22, FY23 and FY24, to reflect heightened exploration and development costs; but are upgraded to the tune of 57% and 93% in FY25 and FY26.
Macquarie says this increases the net asset value, justifying a 31% increase in the target price to $3.40.
Sector: Materials.
Target price is $3.40.Current Price is $3.17. Difference: $0.23 – (brackets indicate current price is over target). If CMM meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
