CANTOR DOUBLES TARGET PRICE FOR FERREXPO

Cantor Fitzgerald has doubled its target price for Ferrexpo, after recent results from the iron ore pellet producer beat market consensus and the company became the lowest-cost pellet producer in the world.

Ferrexpo reported a new production record and that it had preserved its profit margin at 32% despite a 42% fall in the underlying iron ore price.

This meant that although production was up 5.8% at 11.7m tonnes (Mt) and sales were up 1.5% at 11.3Mt, revenue fell 28.2% to $961m and adjusted operating profits were down 33% to $310m and adjusted earnings per share 83% lower at 5.5 cents.