SOUTH32 LTD WKN: A14QLH ISIN: AU000000S320 Kürzel: 32Z Forum: Aktien Thema: Hauptdiskussion

Investing.com - South32 Ltd (ASX:S32) stock rating was upgraded to Buy from Neutral by UBS, with a price target raised to 250p from 205p, citing improved operational performance and attractive risk-reward profile. UBS highlighted South32’s solid December quarter results, which extended a streak of improving operational performance following a period of portfolio simplification. The bank noted that almost all assets met or exceeded expectations, with FY26 guidance maintained and key projects progressing according to plan. The upgrade reflects growing confidence in South32’s operating capability, with UBS raising its EV/EBITDA valuation multiple to 7.0x from 6.0x. The bank believes South32 screens cheap even at these levels, noting that ASX peer Alcoa trades on more than 8.0x. UBS is constructive on South32’s commodity mix, particularly aluminum and copper, while silver trades well above UBS estimates, implying upside to earnings at Cannington and Hermosa. The bank’s EPS forecasts were raised by 35% for FY26 and 8% for FY27. South32 trades on 6%/8%/13% free cash flow yield in FY26-28, which UBS views as attractive risk-reward despite the stock trading at 52-week highs. The bank sees upside potential to £3.25 per share versus downside risk of £1.35.