Citi has upgraded Fortescue Metals, pointing to the iron ore miner’s “big underperformance” compared to its peers.
Analyst Paul McTaggart upgraded the stock from “buy” to “neutral” following the iron ore miner’s quarterly production update on Tuesday that showed costs and performance fell in line with expectations.
That was despite net debt rising marginally on the prior quarter to $2.1 billion, in part owing to the acquisition of Red Hawk Mining.
McTaggart pointed to Fortescue’s 17 per cent share price decline in the past three months, underperforming BHP and Rio Tinto’s decline of around 2 per cent.
FMG Price at posting:
$16.37 Sentiment: Hold Disclosure: Held
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