Fortescue fair value unchanged at Morningstar as higher copper offsets iron ore pressure

Fortescue

11/10/2026 22:19

** Analysts at Morningstar maintain their fair value estimate for Australian miner Fortescue FMG.AX 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
** Morningstar forecast a 30.7% drop in FMG's annual net income to $2.27 billion for FY27 from $3.93 billion reported in FY26
** Two of 16 analysts rate the stock "buy" or higher, eight "hold" and six "sell" or lower; their median PT is A$15.95 – LSEG data
** FMG stock down over 30% YTD, as of last close

 (Reporting by Rudrannsh Mehra in Bengaluru; Editing by Mark Porter)
 ((Rudrannsh.Mehra@thomsonreuters.com;))