Jefferies downgrades Mineral Resources stock rating to Underperform

Published 31/07/2025, 09:08
Jefferies downgrades Mineral Resources stock rating to Underperform

Investing.com - Jefferies downgraded Mineral Resources Limited (ASX:MIN) (OTC:MALRF) from Hold to Underperform on Thursday, while raising its price target to AUD25.00 from AUD22.00.

The research firm cited valuation concerns following the stock’s strong recent performance, despite acknowledging positive developments at the company’s Onslow operations.

Jefferies noted that Onslow delivered strong performance, demonstrating improved cash flow capabilities when fully ramped up, and the company has moved through its material capital expenditure cycle.

The firm observed that Mineral Resources’ net debt position benefited from foreign exchange revaluations, though balance sheet pressure remains a concern.

Jefferies expects continued headwinds for Mineral Resources in the lithium market unless further supply reductions occur, and in iron ore as the Simandou project comes online.

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