Limited catalysts for 'top-quality' stock - Berenberg starts Boliden with 'hold'

Boliden AB

07/09/2022 11:04

** Berenberg initiates coverage of Swedish mine and smelter
operator Boliden  BOL.ST  with "hold" rating, target price SEK
360 as it sees the shares fairly valued and expects limited
catalysts     
    ** The broker sees few exploration catalysts outside of
incremental exploration at the Boliden Area, Tara and Aitik
mines, pointing to concerns raised by the remedial works at
Aitik tailings dam
    ** Over the medium term it expects relatively stable
production for the mines, and modest growth options also across
the smelters 
    ** Still, Berenberg says Boliden is a "top-quality" mining
stock with favourable commodity exposure and a solid balance
sheet
    ** Boliden is relatively insulated from the European energy
crisis as the countries where the company operates are not
materially reliant on Russian gas imports, it points out
    ** It sees potential for a "solid" 2022 dividend of SEK 24.4
per share
    ** Out of 20 analysts that cover Boliden, four rate it
"strong buy" or "buy", 10 rate it "hold", and six rate it "sell"
or "strong sell"


 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))