While Western Areas' costs for the fourth quarter were 4% higher than Morgan Stanley's forecast, the broker notes this is in-line with the 4% miss on previously reported nickel production. 

Grade concerns persist at the Spotted Quoll project, impacted by pegmatite intrusions. Morgan Stanley's view is that this may continue into the first quarter. 

The Equal-weight rating is retained and the target price decreases to $2.45 from $2.50. Industry view: Attractive.

Sector: Materials.

Target price is $2.45.Current Price is $2.52. Difference: ($0.07) - (brackets indicate current price is over target). If WSA meets the Morgan Stanley target it will return approximately -3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena