This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
After a 16% sell-off from May’s peak, there is potential for the shares to recover thanks to bargain hunting of oversold shares. On 30 May, FRES said Silver & Gold production was on target, helping the shares to multi-month highs. GBP weakness can help the shares.
Gold and Silver are investor safehavens so a strong market rally, with appetite for risk that results in safe-havens being shunned, could see FRES shares suffer. The company’s 2.2% forward dividend yield is well below the best on off from the UK 100 (~8%). A stronger USD can hurts metal prices
Consensus is bullish with 47% of brokers suggesting Buy, 53% advocating Hold and none saying Sell. Note that the consensus target price of 1454p is well beyond our short term objective or revisiting May highs. A share price bounce could encourage some of the many Neutrals to upgrade, giving the shares momentum, especially with 100% of broker price targets suggesting upside from current levels.
Next Event: Q2 Production Report, 25 Jul; H1 Results, 31 Jul
Latest Broker 12-Month Consensus: 47% Buy, 53% Hold, 8% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | -2.1 | -8.0 | -1.3 | -11.6 | -23.7 | -4.5 | 64.5 | 40.4 | 12.2 |
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