Iron ore price, page-34159

Honestly, some of these analysts live in a parallel universe. My view is that some of the sovereign risk with China has been diminishing in the last couple of weeks, which is driving the share price confidence. Without the "China factor" we are still massively undervalued.

BUZZ-RBC says Fortescue presenting negative TSR, downgrades to 'underperform'

16 07 2021 08:48am AEST

** RBC analysts say based on recent run, world's fourth-largest iron ore miner Fortescue Metals Group presents negative total shareholder return (TSR)
** RBC says FMG continues to generate strong free cash flow and dividend yield, but sees better risk-reward in peers like BHP Group Ltd
** Lowers FMG to "Underperform" from "Sector Perform", PT at A$20
** RBC says despite longer-term caution over iron ore prices, there is "potential for near-term volatility to play a significant part in FMG's share price given the reasonably unique proposition as a trading proxy on Chinese macro and industrial activity."
** RBC also forecasts iron ore prices to decline to $170/t for Q3 and $145/t in Q4 on weakening Chinese demand
** Adds that while market for iron ore has recently remained supportive, an ongoing period of lower prices could put pressure on FMG's margins
** Eight of 19 analysts rate stock "buy" or higher, six "hold" and five "sell" or lower; their median PT is A$23.0 – Refinitiv data
** FMG up 9.8% this year, as of last close, compared with 11.4 increase in the benchmark index <.AXJO>
(Reporting by Harish Sridharan in Bengaluru)
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