0340 GMT - The selloff in Fortescue is overdone, according to UBS, which upgrades the miner's stock to neutral from sell. Analyst Lachlan Shaw says investors are too downbeat on the iron-ore price outlook, and that the steel ingredient should hold relatively steady around US$90-US$100 a metric ton for the next five years. The UBS analyst also says concerns about low-grade ore are too high, but raises UBS's estimated discount on Fortescue's ore slightly to 16% from 15% to acknowledge the possibility of reduction in China's steel production. UBS pares its target on Fortescue to A$16.70 a share, from A$17.30 before, following a 35% drop in the stock over the past year. Shares are pricing in roughly US$88 a ton iron ore indefinitely versus a spot price around US$102 a ton, Shaw says. Fortescue is up 0.3% at A$16.26. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
March 26, 2025 23:40 ET (03:40 GMT)
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