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Fortescue Metals Group Ltd (FSUMF): New Buy Recommendation for This Basic Materials Giant

Fortescue Metals Group Ltd (FSUMF): New Buy Recommendation for This Basic Materials Giant

Ord Minnett analyst maintained a Buy rating on Fortescue Metals Group Ltd (FSUMFResearch Report) today and set a price target of A$20.00. The company’s shares closed last Friday at $9.85.

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In addition to Ord Minnett, Fortescue Metals Group Ltd also received a Buy from RBC Capital’s Kaan Peker in a report issued on June 4. However, yesterday, Morgans downgraded Fortescue Metals Group Ltd (Other OTC: FSUMF) to a Hold.

Based on Fortescue Metals Group Ltd’s latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $7.64 billion and a net profit of $1.55 billion. In comparison, last year the company earned a revenue of $9.51 billion and had a net profit of $3.34 billion

Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FSUMF in relation to earlier this year.

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