Jefferies raises PT for Australia's Sandfire Resources, maintains "buy"

Sandfire Resources

25/02/2024 20:48

** Jefferies hikes its price target for Australian
copper-zinc explorer Sandfire Resources  SFR.AX , says company
set to deliver production growth over FY25
    ** Says SFR set to deliver production growth over FY25 on
Motheo asset's ramp-up continuing to deliver at top end of
expectations coupled with MATSA asset's improved consistency
    ** Raises price target to A$8.50 from A$8.25, reiterates
"buy" rating 
    ** Forecasts SFR's net debt to peak at around $482 mln in
the coming six months before production growth facilitates
deleveraging
    ** Says it does not model SFR paying a dividend until H2
FY25 
    ** Brokerage says it sees value in SFR's MATSA asset,
Botswana holdings and their exploration potential on a long-term
basis
    ** 10 of 15 analysts rate the stock "buy" or higher, five
"hold" and none "sell" or lower; their median PT is A$7.50 –
LSEG data
    ** SFR stock down 0.5% YTD, as of last close 

 (Reporting by Echha Jain in Bengaluru; Editing by Kevin Liffey)
 ((Echha.jain@thomsonreuters.com))