Morgan Stanley saw Evolution Mining releasing a weaker-than-expected quarterly performance with production disappointing by -8% and costs by 10%.

Management did stick with its FY23 guidance but the broker highlights weather poses a key risk for run rates at Cowal and Mt Rawdon.

The Equal-weight rating is maintained. Industry View: Attractive. Target $2.55.

Morgan Stanley prefers Northern Star ((NST)) and Newcrest Mining ((NCM)) in the sector.

Sector: Materials.

Target price is $2.55.Current Price is $1.85. Difference: $0.70 - (brackets indicate current price is over target). If EVN meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena