Mineral Resources Best Placed to Weather Lithium Market Volatility
Dow Jones10-14 06:48
2248 GMT - Mineral Resources is Morgans's top pick among Australian lithium miners as share prices in the sector continue to go on a wild ride. Spodumene prices fell 23% in 3Q and have weakened more in October. Morgans responds by cutting its 2027 spodumene price forecast by 16%, to US$1,725/ton. Mineral Resources ended Tuesday at A$45.81, and is down 38% since the start of June. Morgans upgrades the stock to "buy," from "accumulate." "Diversification across mining services, iron ore and lithium better protects earnings and cash flow, with free cash flow yields positive across all our price scenarios," analyst Annabelle Sleeman says. Its price target on Mineral Resources falls 8.5%, to A$65.00/share.
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