Up on a market down day could well signal that change we have been waiting for...plus brokers are giving it the thumbs up.......
CITI reckons the emerging iron ore sector looks bright and has initiated coverage on a handful of stocks, handing out four "buys".
Magnetite play Murchison Metals was the only stock of the five to be given a "hold" recommendation due to uncertainty surrounding the $4.4 billion Oakajee Port project.
Oakajee Port is crucial to unlocking its Mid-West projects in Western Australia.
In order of preference, Citi likes Gindalbie Metals ($1.30 target), Atlas Iron ($2.90 target), Grange Resources (80c target) and Mt Gibson Iron ($2.30 target) and has a buy recommendation on the four.
"With production ramping up, cash flow is generally very strong and prevails of the GFC a fading memory, the outlook for the sector is looking bright," said Citi analyst Clarke Wilkins.
The move follows Merrill Lynch on Monday initiating coverage on Atlas and Gindalbie with buys and $2.85 and $1.43 targets, respectively.
GBG Price at posting:
90.5¢ Sentiment: Buy Disclosure: Held
