Fortescue Metals performed well during the March quarter wet season, the broker declares, with shipments in line. The balance sheet ended the quarter cash positive, but capex guidance has been trimmed.

Resilient iron ore prices mean Fortescue can continue to generate strong earnings, but this is well priced in by the market, the broker believes. Target rises to $8.51 from $7.19, Reduce retained.

Sector: Materials.

Target price is $8.51.Current Price is $11.96. Difference: ($3.45) - (brackets indicate current price is over target). If FMG meets the Morgans target it will return approximately -41% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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