FMG has lagged BHP when it comes to dancing with Chinese stocks, which is no surprise as it’s a pure iron ore (Fe) play. We don’t anticipate a strong move by China’s equity market to drag FMG higher, but we’re already seeing some analysts soften their bearish outlook for Fe, especially short-term, which will push FMG’s share price higher if it gathers momentum. Similarly, if we see further strong stimulus out of China, lifting Fe above $US110/MT, begrudging upgrades could follow with analysts not wanting to be last to the party.
- We like FMG for its yield and potential for growth, and we can see a test of $22 through 2025 – MM owns Fortescue in our Active Income Portfolio.
MM is long and bullish FMG
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Fortescue Ltd (FMG) v Hang Seng China Enterprise Index
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Fortescue Ltd (FMG) v Hang Seng China Enterprise Index
