Goldman Sachs lowered its target price for MMG Ltd (01208) to HK$3 from HK$4.6 and maintained its "buy" rating.
The research house cut its estimates for MMG, and now expects the company to deliver a net loss of US$187mn for 2019 (from US$114mn net profit previously), and a net profit of US$191mn for 2020 (down from US$331mn), reflecting lower production/sales volume forecast for Las Bambas in 2019 due to road blockage impacts, coupled with lower LME copper price forecasts for 2019-2020.
Goldman said that if the production/sales impact in LB from the road blockage remains at the same level as in 2019, MMG could post a net loss of US$9mn, suggesting operational challenges in LB will be a key overhang on the stock.
21/10/2019 17:17
{I-bank focus}Goldman lowers MMG Ltd (01208) to HK$3
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