Here’s a nutty little morsel from one the leading City brokers if not so much extolling the virtues of Ferrexpo (LON:FXPO), then pointing to the potential value of the investment.
The recent placing of 63mln at 110p has decimated the iron ore pellet producer’s value, while a further 78mln shares are in the hands of one investor who may be looking to unload.
This creates what we in the business call a stock overhang - and until it is cleared, it creates all sorts of uncertainty.
However, when the dark clouds do lift, Ferrexpo could be due a significant rebound. Deutsche Bank said there is 70% “upside” as it lifted its price target from 130p to a punchy 185p.
The fundamentals of the business are improving, points out analyst Rene Kleyweg.
“So where can the share price go from here? In our opinion, up significantly,” she adds.