Australia's Jervois Global rises; Jefferies retains 'hold' rating, cuts PT

Jervois Global

01/02/2024 03:46

** Shares of Jervois Global  JRV.AX  rise as much as 3.7% to
A$0.028 
    ** Jefferies retains "hold" rating, cuts PT to A$0.03 from
A$0.04
    ** Analysts see funding risks, say payment of the deferred 
São Miguel Paulista nickel and cobalt refinery acquisition will
add to balance sheet constraint
    ** Adds key to growth is restarting SMP  
    ** Continued cobalt market pressure, and a high interest
rate environment suppress cash flow potential from JRV's assets
- Jefferies
    ** Brokerage see small upside risk in the cobalt pricing in
2024, and see JRV's leveraged position set to benefit on price
exposure
    ** Session's vol is 1.2x the 30-day average volumes
    ** All three analysts rate the stock "hold"; their median PT
is A$0.03 – LSEG data
    ** Stock fell ~84% last year

 

 (Reporting by Neha Soni in Bengaluru)
 ((Neha.Soni@thomsonreuters.com))