Australia's Fortescue slips as Jefferies cuts PT with cost headwinds in focus
BUZZ-Australia's Fortescue slips as Jefferies cuts PT with cost headwinds in focus Updates
** Shares of Australia's Fortescue FMG.AX fall as much as 3.6% to A$17.84, set for their third consecutive session of losses, if losses hold
** Jefferies cut its price target for the miner to A$16.00 ($11.23) from A$16.50, citing cost headwinds and planned impairment at its Iron Bridge magnetite project
** The company said on Friday it expects to book ~$525 million after-tax non-cash impairment in FY26, which will be excluded from underlying net profit after tax, due to Iron Bridge's revised ramp-up timeline and a range of production outcomes
** Brokerage raises its forward operating cost assumptions and increases its capex estimates, pointing to higher diesel costs, including others
** Jefferies says FY27 shipment guidance was broadly in line with expectations, but unit cost guidance came in above both its forecasts and consensus estimates
** Stock has fallen 18.8% this year
($1 = 1.4243 Australian dollars)
(Reporting by Roshan Thomas and Aamir Sheik Khalid in Bengaluru)
((Roshan.Thomas@thomsonreuters.com; Aamir.SheikKhalid@thomsonreuters.com))
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