Broker Watch

ASX upgrades and downgrades: Santos, Oz Minerals and Sandfire Resources

Fri 15 Jul 22, 2:06pm (AEST)
Coils of shiny copper on shelf
Source: iStock

Stocks in article

evn
MktCap:
-
sto
MktCap:
-
29m
MktCap:
-
ozl
MktCap:
-
sfr
MktCap:
-

Commodities in article

Share article

Key Points

  • Citi is bullish on Santos and gas prices
  • Credit Suisse downgrades several copper miners to reflect weak spot prices and oversupply

Market Index provides daily updates for the latest broker upgrades and downgrades for S&P/ASX 200 companies. 

Upgrades 

Evolution Mining (ASX: EVN)

  • Credit Suisse upgraded to Neutral from Underperform - $2.50 target price (from $2.70)

  • Rating upgraded but a challenging quarter is expected for gold and copper miners as spot prices decline, margins squeezed

Santos (ASX: STO)

  • Citi upgraded to Buy from Neutral - $8.60 target price

  • Gas prices remain elevated, profit forecasts upgraded for FY22-23

Downgrades

Credit Suisse downgraded all the major copper players to reflect the recent decline in copper spot prices and industry-wide cost inflation. The investment bank believes the copper market is oversupplied and expects prices to return to pre-covid levels.

29 Metals (ASX: 29M)

  • Credit Suisse downgraded to Underperform from Neutral - $1.15 target price (from $2.85)

  • Golden Grove project at risk of a production downgrade

Oz Minerals (ASX: OZL)

  • Credit Suisse downgraded to Underperform from Neutral - $13.00 target price (from $20.00)

  • At greater operating risk compared to other copper miners, expects costs and capex to increase in FY22 earnings

Sandfire Resources (ASX: SFR)

  • Credit Suisse downgraded to Underperform from Neutral - $2.70 target price (from $6.10)

  • Increasing concerns about cashflows and ability to meet debt obligations as copper prices decline

 

Related Tags

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

Get the latest news and media direct to your inbox

Sign up FREE