0246 GMT - A steep selloff in Mineral Resources leads UBS to reverse its rating, upgrading the stock to buy from sell. The Australian miner's shares have fallen by nearly 30% year to date, adding to a more than 50% loss in 2024. UBS analysts say their earlier sell recommendation was based on the company's high operational and fiscal leverage to iron ore and lithium prices at a time when the outlook for both had deteriorated. The company also faced a significant debt burden and governance issues. "While those concerns haven't fully resolved yet, we have reassessed funding and operational scenarios with resultant EPS upgrades of 6%/45% in FY26/27" estimates, they say. "We see enough upside to upgrade to a buy rating, with revised A$28.60/share price target" compared with A$33.00 previously. Mineral Resources is up 9.2% at A$23.97. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
March 16, 2025 22:46 ET (02:46 GMT)
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