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Research house Kepler Cheuvreux raised Boliden’s price target to SEK 305 (265) this morning with repeated container recommendations and tracks a “relatively” strong fourth-quarter profit for the mining and smelting company.
Kepler Cheuvreux notes that although a weaker US dollar will have a negative effect on Boliden’s earnings, this will be well offset by steadily rising metal prices.
“Due to favorable price conditions and favorable trading, we expect a relatively strong profit in the fourth quarter,” writes the research house, which tracks an operating profit for the quarter of 2.451 million SEK.
According to Infront’s latest compilation of analyst estimates, released on November 6, an operating profit of an average of 2.374 billion SEK is expected.
Regarding the dividend, the research house assesses that Boliden “only” proposes an ordinary dividend of 8 SEK per share, given the definitions of net debt of the administration, it is stated.
Turning to metals markets, Kepler Cheuvreux notes that support has recently been seen from strong demand from China, a weak dollar and the reopening of companies.
In early trading Monday, bullish optimists took over where large gains were seen on world stock exchanges. Within the SX1000PI Stockholm Stock Exchange Commodity and Materials Index, SSAB and Lundin Mining, among others, increased between 4.6 and 5.2 percent. Oil prices strengthened by more than 1 percent, bringing with them the oil companies, which rose between 1.7 and at most 9 percent.
