Ignore Simply Wall Street, Blighty. Computer generated claptrap. Look to better sources.
The broker analysts are bullish after the 1Q report:
South32 Price Target Raised 8.7% to A$5.00/Share by Credit Suisse03/11/2021 9:13AMNo story, headline only
South32 Price Target Cut 2% to A$4.90/Share by Macquarie22/10/2021 8:43AMNo story, headline only
Goldman Sachs (21 Oct) says:
We retain our Buy rating (and keep S32.AX on the ANZ Conviction List) on:
Valuation: The stock is trading at c. 1x NAV (A$3.88/sh) excluding Sierra Gorda.
Strong FCF outlook: We forecast a FCF yield of c. 15% in FY22 & FY23 (over 20% at spot), driven mostly by exposure to base metals (aluminium & alumina c. 50% of FY22 EBITDA, zinc/nickel c. 20%).
Increased capital returns: We assume the buyback continues to be extended (at US$250mn p.a) and S32 continues to pay out 70% of earnings (40% ordinary, 30% special dividend component). On our estimates, S32 is on a dividend yield of c. 11-12% in FY22 & FY23.
Positive project newsflow: We would see the commitment to the restart of the Alumar aluminium smelter as a positive (c. 6% upside to EBITDA), and highlight the potential for capex on the US$800mn Dendrobium next domain (DND) met coal project to be reduced (which we would view as a positive),
S32 is due to release the PFS results from the Hermosa zinc/silver/lead project (GS NPV US$1.1bn) in Arizona in Nov/Dec.
I am as bullish as the analysts.
Ash
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Last
$3.67 |
Change
-0.070(1.87%) |
Mkt cap ! $16.61B |
Open | High | Low | Value | Volume |
$3.64 | $3.70 | $3.63 | $20.68M | 5.675M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
21 | 70858 | $3.67 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$3.68 | 60397 | 50 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
8 | 9739 | 3.670 |
42 | 304418 | 3.660 |
33 | 801846 | 3.650 |
22 | 147976 | 3.640 |
14 | 226806 | 3.630 |
Price($) | Vol. | No. |
---|---|---|
3.680 | 110534 | 63 |
3.690 | 333232 | 32 |
3.700 | 210936 | 24 |
3.710 | 229721 | 13 |
3.720 | 76035 | 11 |
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