2021 net profit of US$189m beat Credit Suisse estimates largely because tax losses were carried forward at Curragh. Dividends were reinstated and dividend policy is unchanged at 60-100% of free cash flow.
The five-year production outlook target at Curragh and in the US is now slower than the broker previously anticipated, with the Curragh 50mt expansion an incremental option that is under assessment.
The broker trims the target to $2.00 from $2.20 and maintains an Outperform rating.
Sector: Materials.
Target price is $2.00.Current Price is $1.56. Difference: $0.44 – (brackets indicate current price is over target). If CRN meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
