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Trade Parameters
Technical Observations – For
Technical Observations – Against
Most of UK Index Mining sector pushing fresh multi-year highs, helped by high oil prices. Weak GBP helps flatter value of dollar dividends. If USD turns lower, it could give further impetus to metals prices. Decent 5.3% dividend yield should attract income seekers looking for capital appreciation too. Company today said looking at acquisition opportunities in other commodities, while productivity gains should add $1.5bn extra cash flow from 2021.
Consensus is overall bullish (only 10% of brokers say Sell). However, the consensus target is 5% below current levels and 64% of broker targets still suggest downside. After the share price break-out, analysts may need to re-appraise both their ratings and targets. This may result in the army of Neutrals upgrading their ratings, and everyone upping their price targets.
Next Event: Q2 Production, 17 Jul
Latest Broker 12-Month Consensus: 47% Buy, 43% Hold, 10% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
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