The company’s re-set plan for Nifty provides a path to profitability and is split into two phases over three years. Production and costs are below Macquarie’s forecasts, which drives a weaker earnings outlook.
Delivering on the new targets is critical and, if the company is successful, this should underpin a re-rating for the stock, in the broker’s view. Outperform rating maintained. Target is reduced to $0.45 from $0.60.
Sector: Materials.
Target price is $0.45.Current Price is $0.27. Difference: $0.18 – (brackets indicate current price is over target). If MLX meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges – negative figures indicate an expected loss).
