The share price of Mineral Resources has outpaced the market so far this year, rising 22%.
The ASX 200 mining stock may also have a promising future because, according to one broker, this fiscal year’s earnings will increase by about 150% to $2.5 billion.
Looking further out, the broker is reported to anticipate that by the financial year 2024, the company’s earnings will have increased 87%.
The share price of Mineral Resources Limited (ASX: MIN) is now doing 35% better than the S&P/ASX 200 Index (ASX: XJO).
If these analysts are to be believed, even better times may be ahead as the company’s earnings are supposedly expected to soar in the upcoming years.
The ASX 200 firm offers mining services, mines lithium and iron ore, and investigates the Perth Basin for gas.
It is currently exceeding the larger index as well. Currently trading at $71.65, the share price of Mineral Resources is down 0.6%. The index is now falling 1.5%.
What do analysts predict will happen to the business in the future? Let’s look at it.
EBITDA of ASX 200 miners is expected to increase 87% by FY24.
The ASX 200 mining share has a $77 price objective from RBC Capital Markets, according to the Australian Financial Review.
But it isn’t the only issue. The broker is rumoured to be anticipating a significant increase in the company’s earnings.
For the fiscal year 2022, Mineral Resources reported underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of over $1 billion.
This fiscal year, it’s predicted to rise by almost 150%, with RBC Capital Markets allegedly anticipating the company to record EBITDA of $2.5 billion, powered by its lithium segment.
That is noticeably higher than what renowned broker Goldman Sachs predicted. It anticipates that the ASX 200 miner will earn $2.3 billion.
On shares of Mineral Resources, Goldman Sachs has a buy rating and a $69.50 price objective.
RBC Capital Markets projects that Mineral Resources’ earnings will have increased 87% from financial year 2022 levels by the end of the 2024 fiscal year.
This is true notwithstanding the broker’s pessimistic predictions for the pricing of iron ore and lithium. The AFR cited analyst Kaan Peker as saying:
Despite a predicted fall in the price of iron ore and lithium, [Mineral Resources] has positioned itself for multi-commodity production growth, which will support ongoing high earnings creation.
The ASX 200 miner’s stock has increased 22% so far this year. Additionally, it has increased by 60% from this time last year.
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