FMG, Rio Tinto & BHP share prices: Macquarie remains resoluteIt...

FMG, Rio Tinto & BHP share prices: Macquarie remains resolute

It seems prevailing sentiment around iron ore prices has done little to deter Macquarie’s bullish analysts, though.

In a research report released today, Macquarie Wealth Management reiterated OUTPERFORM ratings on all of the big three Australian Miners. From yesterday’s closing prices, the investment bank continues to expect high single-digit total shareholder returns (TSR). Here Macquarie expects potential upside of +7% for BHP(ASX: BHP), +7% for Rio Tinto (ASX: RIO) and +9% for Fortescue Metals Group (ASX: FMG).

Looking at the thrust of this bullishness: Macquarie believes that still-strong iron ore prices will continue to drive earnings momentum and that generally bullish fundamentals are likely to remain intact across 2020.

At a more granular level, with a constrained supply outlook and favourable growth in Chinese steel production still expected – the investment bank is now forecasting a 30 million tonne deficient in CY20.

This should, thinks Macquarie, be conducive of holding iron ore prices above the ‘industry cost curve.’

At the time of writing the share prices of BHP, Rio Tinto and FMG all traded at five-year highs. The FMG share price in particular rose to $10.94 today.