RBC Revises South32 Price Target, Forecasts After In-line FY26 Earnings, Dividends

12:07 PM EDT, 08/28/2026 (MT Newswires) -- RBC Capital Markets bumped up its price target for South32 (S32.L, S32.JO) to AU$5.50 from AU$5.30 as it rolled its valuation forward following the metals and mining company's in-line fiscal 2026 earnings and dividends. "FY27 production is unchanged although new FY27 guidance for Australia Manganese is weaker than expected reflecting constrained pit access due to elevated water volumes. New unit cost guidance for FY27 is slightly higher vs RBCe at Worsley and South Africa Manganese. Capex guidance for FY27 of $1.8bn is 7% above consensus of $1.68bn (RBCe $1.6bn) with Hermosa at $1bn," the research firm said Thursday. With this latest guidance in mind, analysts reduced their projected EBITDA for fiscal 2027 by 6%, while that for fiscal 2028 was increased by 13%. Underlying net profit and underlying EPS estimates for both years were also updated. "Looking ahead, S32's focus is on completing the ~$5.6B sale of the Aluminium assets in 2H FY27, lifting copper production at Sierra Gorda, progressing Hermosa with first production due 2H FY28, and studying a potential mine life extension at Cannington beyond FY33," RBC added, reiterating the stock's outperform rating.