[ET Net News Agency, 6 February 2018] Goldman Sachs lifted its target price for MMG Ltd
(01208) to HK$7.2 from HK$5, and maintained its "buy" rating.
The research house revised up MMG earnings by 16% for 2017, 33% for 2018 and 31% for
2019, to reflect its new LME copper price forecasts of US$3.46/lb for 2018, US$3.54/lb for
2019 and 2017 full year copper/zinc price of US$2.80/lb and US$1.31/lb.
Goldman maintained its positive view on the company as one of the most leveraged copper
players and a key beneficiary of a rising copper price. It expects free cash flow to reach
US$1.3-1.8bn for 2018-19 and net gearing to fall to 120% by 2020 from over 900% in 2016.
(KL)