Mineral Resources' analyst price target has increased modestly from $36.60 to $37.51, as analysts cite improved profit margins offsetting slower revenue growth in their updated outlook.
What's in the News
- Mineral Resources Limited is considering the sale of its lithium mines, including Wodgina, Mt Marion, and Bald Hill, to reduce its $5.3 billion debt pile (Key Developments).
- The company posted an annual loss of $904 million, prompting a review and ranking of its asset portfolio for possible divestment (Key Developments).
- Managing director Chris Ellison, who has faced recent scandals, will depart the company. It is unclear if this will meet last year's timeline set by the board (Key Developments).
- Chairman Mal Bundey indicated that asset categories have been assigned as A, B, or C, with certain assets potentially up for sale to strengthen the balance sheet (Key Developments).
- MinRes's lithium operations are owned in partnership with Albemarle and Ganfeng. Decisions around these partnerships are ongoing in light of current financial pressures (Key Developments).
Valuation Changes
- The consensus analyst price target has increased modestly from A$36.60 to A$37.51.
- The discount rate has risen slightly from 8.38% to 8.45%.
- The revenue growth estimate has fallen significantly from 9.28% to 6.76%.
- The net profit margin estimate has risen from 2.45% to 3.43%.
- The future P/E ratio has decreased from 63.8x to 50.2x, reflecting improved earnings expectations.
Disclaimer
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