Jefferies cuts PT on Sandfire Resources, sees short- to medium-term risk

Matsa Resources

28/02/2022 21:14

** Jefferies cuts price target on mineral explorer Sandfire
Resources  SFR.AX  to A$7.50 from A$8.80, downgrades rating to
"hold" from "buy"
    ** Co on Monday posted a 24% increase in HY net profit
attributable to $55.2 mln  urn:newsml:reuters.com:*:nASX8qz460
    ** Jefferies says HY results were below its forecast but are
largely irrelevant as the company is focused on its growth
assets - the MATSA mining complex in Spain and Motheo copper
mine in Botswana
    ** Brokerage believes there is short- to medium-term risk
for SFR following the strong share price appreciation since its
MATSA acquisition, as increased disclosure regarding the asset
disappoints relative to expectations
    ** Says external drivers beyond the company's control, such
as commodity and currency price moves, have a material impact on
SFR's share price
    ** Adds SFR is reaching a "significant state of transition"
over the coming 24 months
    ** Seven of 14 analysts rate the stock "buy" or higher,
three "hold", and four rate it "sell" or lower, their median PT
is A$7.25 - Refinitiv data
    ** As of last close, stock has gained 1.8% this year

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))