Jefferies cuts PT for Australia's Fortescue; cites cost headwinds and Iron Bridge writedown

Fortescue

02/08/2026 19:49

** Analysts at Jefferies cut their price target for Australia's Fortescue FMG.AX to A$16.00 ($11.23) from A$16.50, citing cost headwinds and a planned impairment at its Iron Bridge magnetite project
** Brokerage reiterates its "underperform" rating
** Miner on Friday said 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, foreign exchange headwinds and maintenance spending at Herb Elliott Port
** Jefferies say FY27 shipment guidance was broadly in line with expectations, but unit cost guidance came in above both its forecasts and consensus estimates
** Two of 16 analysts rate the stock "buy" or higher, six "hold" and eight "sell" or lower; their median PT is A$18.48  ($12.97), according to data compiled by LSEG
** Stock has fallen 15.9% this year, as of last close


($1 = 1.4243 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))