Revenue and earnings for Stanmore Resources in FY23 were broadly in line with Morgans forecasts, while the final dividend of US8.4cps exceeded forecasts by the broker and consensus for US4cps and US6.5cps, respectively.

Operating cash flow (OCF) of $737m was around $130m better than the broker's forecast on lower cash tax and working capital adjustments.

The analyst suggests recent confirmation of sustainable dividends will widen the company's share price appeal. 

Morgans sees Stanmore becoming the default ASX-listed coal producer for hard coking coal exposure in time.

The Add rating is retained, while the target eases to $4.15 from $4.20.

Sector: Energy.

Target price is $4.15.Current Price is $3.50. Difference: $0.65 - (brackets indicate current price is over target). If SMR meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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