It was a good month for this beaten down miner…
The post The Fortescue (ASX:FMG) share price jumped 22% in November appeared first on The Motley Fool Australia. –
The Fortescue Metals Group Ltd (ASX: FMG) share price roared back to life in November.
The mining giant’s shares were among the best performers on the S&P/ASX 200 Index (ASX: XJO) last month with a gain of 22.1%.
As a comparison, the ASX 200 slipped 0.9% over the period.
Why did the Fortescue share price race higher?
Investors were bidding the Fortescue share price higher last month after the iron ore price appeared to find a bottom. This followed the announcement of favourable policies in China which analysts feel could put a floor on prices.
This led to many investors picking up the company’s shares on the belief they had been oversold in prior months.
After all, even after its strong showing in November, the Fortescue share price is still down 31% since the start of the year.
Where next for its shares?
Opinion continues to be incredibly divided on the Fortescue share price and its future direction.
One of the most bearish brokers is Goldman Sachs. Last month the broker retained its sell rating and lowly $11.00 price target on the company’s shares.
Over at Morgans, its analysts are a little more positive but still see material downside for its shares. The broker upgraded the company’s shares in November to a hold rating but with a price target of just $13.00.
Finally, Bell Potter remains bullish on its shares. Last month the broker retained its buy rating but trimmed its price target slightly to $19.75. This implies potential upside of 16% over the next 12 months. Its analysts also estimate that Fortescue’s shares will provide a fully franked 13% dividend yield in FY 2022 despite the weaker iron ore prices.
Which broker makes the right call, only time will tell.
The post The Fortescue (ASX:FMG) share price jumped 22% in November appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.