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What’s causing the Fortescue (ASX:FMG) share price to leap 9% today?

It’s a good day on the ASX so far for iron ore miners…
The post What’s causing the Fortescue (ASX:FMG) share price to leap 9% today? appeared first on The Motley Fool Australia. –

The Fortescue Metals Group Ltd (ASX: FMG) share price is climbing higher today, up 9.2% to $17.26 per share.

That’s well ahead of the 0.7% gain posted by the S&P/ASX 200 Index (ASX: XJO) at this same time.

So, what’s going on with the iron ore giant?

ASX 200 iron ore miners are in the green today

The answer to that question likely is revealed in the way I phrased it.

With no price-sensitive news from the company today, Fortescue shares look to be getting a healthy boost from a sharp increase in iron ore prices. Iron ore gained 4.3% overnight to trade at $US95.63 (AU$131) per tonne.

While Fortescue is leading the charge, fellow ASX 200 iron ore miners are also well into the green today.

The BHP Group Ltd (ASX: BHP) share price, for example, is up 4.5%. And shares in Rio Tinto Ltd (ASX: RIO) are up 4.4% at the time of writing.

Now, with today’s big leap, what can investors expect next for Fortescue?

That depends on who you ask.

As my Foolish colleague, James Mickleboro, wrote earlier today, “The team at Bell Potter continue to see a lot of value in the Fortescue share price. A recent note reveals that its analysts have a buy rating and $19.75 price target [over the next 12 months] on its shares.”

That’s some 14% above the current share price.

Goldman Sachs, on the other hand, has a decidedly different view, with a sell rating and $11.00 target on the Fortescue share price.

Fortescue share price snapshot

The Fortescue share price was performing strongly into July this year when iron ore was fetching record prices of some US$220 per tonne. Shares are down 34% since 29 July.

More recently, Fortescue shares have gained around 18% in the last month, even as the ASX 200 has slipped 0.5%.

The post What’s causing the Fortescue (ASX:FMG) share price to leap 9% today? appeared first on The Motley Fool Australia.

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More reading

2 high-yielding ASX 200 dividend shares

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ASX 200 (ASX:XJO) midday update: BHP, Woodside rise, TechnologyOne falls

Is the Fortescue (ASX:FMG) share price dirt cheap or overvalued?

Only a few ASX 200 companies have received this honour and Scentre (ASX:SCG) just joined them

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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