FMG has already bounced ~50% from its November low but it’s still only trading on a P/E for 2023 for 10.3x while it’s expected to yield almost 10% over the next 12 months – importantly its payout is forecast to fall over the coming years in line with a declining iron ore price.
- We can see FMG trading above $23 into Christmas but we wouldn’t be chasing the strength.
MM is mildly bullish towards FMG short-term
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Fortescue Metals Group (FMG) v Iron Ore ($US/MT)
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Fortescue Metals Group (FMG) v Iron Ore ($US/MT)
