Whitehaven and Sandfire Morgan Stanley's top picks

Analysts at Morgan Stanley have named Whitehaven Coal, Sandfire Resources and Mineral Resources as their top three mining picks
17th January 2020
Resources Rising Stars

Analysts at Morgan Stanley have named Whitehaven Coal, Sandfire Resources and Mineral Resources as their top three mining picks (reports The Australian Financial Review).

"Whitehaven coal is generating strong free cash flow on both our base case and spot commodity price scenarios," the broker wrote. It has an overweight rating on the coal miner and reckons it has some 43 per cent upside based on a $3.65 valuation.

"Sandfire valuation is well supported with the low-cost DeGrussa and a substantial net cash position. A compelling dividend yield should help further support the stock." The analysts have a $6.80 price target on Sandfire.

The broker also likes Mineral Resources thanks to its recent efforts to manage upcoming capital expenditure commitments. "The completed 60/40 Wodinga deal with Albermale (MIN40%) enhances confidence in the Wodinga project." It has a $17.10 price target on the lithium miner.

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