Mineral Resources extends gains after haul road sale approval
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The news: Shares in Mineral Resources rocketed for a second consecutive day as analysts remained positive on the miner's outlook following a management call.
The numbers: MinRes gained 8.9% to $38.23 by 12:15pm AEST, having closed 16.47% higher on Wednesday after securing approval by the Foreign Investment Review Board to sell a 49% stake in its Onslow Iron project's haul road to Morgan Stanley Infrastructure Partners.
The context: Morgan Stanley analyst Rahul Anand reaffirmed an 'overweight' rating on the company, noting that the stock is cheap and offers "significant upside for value investors with a long-term horizon".
Anand said he did not see an equity raise being required, unless a weakening of up to 25% was seen in both iron ore and lithium spot prices over the course of FY25.
Citi analyst Kate McCutcheon noted that 40% of Mineral Resource's capital expenditure cuts was across lithium, with the rest across iron ore, energy and corporate.
Citi has a price target of $50 on the stock while Morgan Stanley's price target is at $70.
The sources: Morgan Stanley research, Citi research
