Having returned from a site visit, Morgans highlights the successful transition of the BMC assets into full Stanmore Resources ownership. It's felt shares of Stanmore Resources offer around 60% upside.

The analyst is attracted to higher capital upside versus peers and strong cashflow/valuation leverage, as well as M&A advantages/ opportunities for met coal in Queensland.

The Add rating is kept while the target slips to $3.90 from $4.10.

Sector: Energy.

Target price is $3.90.Current Price is $2.45. Difference: $1.45 - (brackets indicate current price is over target). If SMR meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena