“We review our investment view and assumptions as the sector (ex-iron ore) sell off continues,” Raymond said.
“S32’s share price has declined -28% over the last 12 months, similar to its midcap Aussie peers -35%, although the selloff has been longer in duration.
“Substantial share price weakness on short-term earnings deterioration, isn’t helped by a lack of catalysts.
“The Hermosa development is being fast-tracked but there is still a gap in S32’s growth profile.
“We see potential for S32 to pursue additional acquisitions in base metals.
“We maintain an Add rating, with an updated target price of $4.80 a share (was $5.20),” Raymond said.
South32 (S32) – last 12 months
Source: nabtrade
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