Eramet: included in Portzamparc's 'High Five' (correction)

The 5 June comments on Portzamparc's analysis of Eramet contained an error.
Please note in the second paragraph that the broker's optimism is based on manganese price trends, and not on lithium extraction projects.

(CercleFinance.com) - Portzamparc analysts announced on Wednesday that they had added Eramet to their list of favorite small and mid-cap stocks, the "High Five".

In a note, the broker considers that the earnings targets communicated by the mining and metallurgy group may prove too cautious in view of the recent surge in manganese prices.

Portzamparc points out that manganese ore prices have exploded recently following the flooding and shutdown of the world's second largest manganese mine.

Whereas it was trading at $4.4 per metric ton unit (dmtu) in March, the ore is now trading at around $8 per ton, notes the analyst in charge of the stock.

The broker also refers to the company's propensity to increase its production capacity in view of the significant resources at its disposal, as well as the prospect of the start-up of lithium production, scheduled for the summer.

Against this backdrop, Portzamparc - which has a 'buy' recommendation on the stock - still sees significant upside potential, despite the stock's recent rally.

Its target price of E183 gives the stock 81% upside potential.


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