Ord Minnett believes Fortescue Metals Group shares are oversold and offer an attractive buying opportunity over the medium term. Under a spot scenario with a US$68/t realised iron price, versus a 10-year average of US$89/t, a $24 per share valuation is generated.

The analyst points out spot iron ore has been rising intraday due to positive developments around the Evergrande situation in China. The Buy rating and $26 target price are retained.

Sector: Materials.

Target price is $26.00.Current Price is $15.37. Difference: $10.63 - (brackets indicate current price is over target). If FMG meets the Ord Minnett target it will return approximately 41% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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