Sandfire Resources shares rebound after UBS upgrade
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The news: Sandfire Resources shares rebounded on the ASX after it fell on Thursday following the miner's second-quarter result on Thursday, as UBS upgraded their rating and price target on the stock.
The numbers: Sandfire shares were up 4.6% to $10.09 by 3pm AEDT, having closed 1.2% lower in the previous session.
UBS upgraded from 'sell' to 'neutral' and increased its price target 6% to $10.45.
Macquarie and Citi maintained their 'neutral' ratings on the stock, and kept their respective price targets of $9.80 and $10.50. Morgan Stanley remains 'underweight' with a $9.00 price target.
The context: UBS upgraded its rating and price target on Sandfire, with analyst Levi Spry noting that the copper and nickel miner's cost performance was "very good" during the December quarter, despite "slightly softer" copper production.
Spry said that the "more material news" was that Sandfire is confident that its Motheo copper mine in Botswana can increase output to 5.6 million tonnes per year, adding 3,000 to 4,000 tonnes of copper production to UBS' near-term forecast, and lifting its earnings-per-share estimates by 7% in FY26 and FY27.
The rating upgrade was also driven by Sandfire shares retreating by 13% since peaking in October, Spry said.
The sources: Citi research, Macquarie research, Morgan Stanley research, UBS research
