SDL is obviously appearing on the radar of a lot of more of the market analysts these days....and it is great to see that they are making recommendations and getting the news out there...
albeit they do always take a very conservative and cautious approach when quoting a SP range and discount it for factors that have not yet occurred......in addition they rate the Company within a certain SP range based on many factors and conditions
The range of 22-26cents suggest a 29-52% increase on where we are currently trading at today 17cents....and if you purchased SDL on Friday for 17cents and get 29-52% increase on your return in the next 6-12mths then that is still a good return...banks are giving about 4-5%
The point to note IMO is that most of the analysts will only rate the company on the current value and all know events...when things fall into place with funding etc...the company will be re-rated and the SP that they will then quote will move up to their next range....and minus those discounts...
As per “BBY broker report” the major catalyst for a share price re-rating will be the emergence of the funding agreement and or strategic partner…the discounts applied to the current SP recommendation by some of the broker IMO is substantial but is based on their current knowledge and does not take into consideration the significant and potential upside to this project…
Also as per BBY broker report…Upside exploration potential. Sundance controls 3,755 square kilometers of exploration permits in areas with significant upside potential. This is a speculative play in terms of current iron ore prices, but there is little doubt that deposits in this region will be mined in the future and may offer regional synergystic benefits
SDL Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
