WAF has been the best-performing resource stock on the main board, advancing an impressive +58% year-to-date. This gold miner has been rotating around current levels since April, and we see no reason to pre-empt the next move in either direction. The company delivered a solid 1H net profit of $92.2mn in August, which has flowed into Macquarie, upgrading the stock’s target price target to $2. This is a high Beta play on gold, which, after recent moves, MM isn’t keen to chase into further strength without fresh company news
- Gold is likely to dictate moves in WAF into Christmas. It looks rich, above $1.60, and good buying, around $1.20.
MM is neutral towards WAF, around $1.50
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