Fortescue's (ASX:FMG) share selloff and market concerns over the iron ore price outlook are "overdone," according to a Monday report by The Australian, citing investing and financial firm UBS.
UBS analyst Lachlan Shaw expects that iron ore prices will hold steady at around $90 to $100 per tonne over the next five years.
While Shaw increased the low-grade discount forecast from 15% to 16%, the adjustment still sits below the market estimate of about 18%, acknowledging the possibility of steel production curtailments.
UBS upgraded Fortescue to neutral from sell but lowered its price target to AU$16.70.
Fortescue's shares rose nearly 2% in recent Monday trade.
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