Fortescue Metals' 2Q production results exceeded market expectation for shipments, pricing and cost performance though Morgans retains its Reduce rating. It's felt China's re-opening is already priced in and steel market conditions are still subdued in that country.

After the broker raises its long-term iron ore price forecast to US$72/t from US$65/t and increases its price realisation estimates for the next quarter to 84% from 82%, the target rises to $15.60 from $14.70.

Management left FY23 shipments guidance unchanged and noted first production at Iron Bridge is on track for the end of the 3Q.

Sector: Materials.

Target price is $15.60.Current Price is $22.49. Difference: ($6.89) - (brackets indicate current price is over target). If FMG meets the Morgans target it will return approximately -44% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2023 Acquisdata Pty Ltd., source FN Arena