Australia's Fortescue rises as Morningstar keeps fair value unchanged

Fortescue

12/10/2026 02:28

Updates
** Shares of Fortescue FMG.AX rise as much as 2.2% to A$15.670
** Analysts at Morningstar maintain their fair value estimate for the iron and steel miner at A$15.5, citing very positive copper sentiment counterpoised by a drop in iron profits due to near-record freight shipping rates
** Investment research firm assumes a 50-cent increase in average price of copper for the next three years, expecting $6.50/pound driven by high demand from data center infrastructure
** Fortescue reported a preliminary 6% drop in its first-quarter iron ore shipments year over year; flagged cash reserves falling 37% to $3.2 billion and net debt tripling to $2.8 billion as at September 30
** Two of 16 analysts rate the stock "Buy" or higher, eight "Hold" and six "Sell" or lower; their median PT is A$15.95 – data compiled by LSEG
** FMG stock down nearly 30% YTD, including the session's moves

(Reporting by Rudrannsh Mehra & Paridhi Minda in Bengaluru; Editing by Mark Porter)
((Rudrannsh.Mehra@thomsonreuters.commailto:Paridhi.minda@thomsonreuters.com;))