Morgan Stanley lowers its target for OZ Minerals to $21.80 from $23.10 following September quarter results. The Equal-weight rating is unchanged. Industry view: Attractive.
As noted yesterday: OZ Minerals' September-quarter update disappointed Morgan Stanley, as production fell (a -11% miss) and cost rose (a -13% to -14% miss).
Management guided to higher costs.
The broker observes copper production at Prominent Hill is below YTD run rates, and an improvement will be needed in the December quarter if full-year guidance is to be met.
Sector: Materials.
Target price is $21.80.Current Price is $24.03. Difference: ($2.23) - (brackets indicate current price is over target). If OZL meets the Morgan Stanley target it will return approximately -10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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