Following 2Q production results for Sandfire Resources, Morgan Stanley believes FY24 guidance remains achievable, with the ramp-up at the Motheo operations progressing well.

Copper production missed forecasts by the broker and consensus by -3% and -4%, respectively, while costs (C1) were -5% worse against the broker's estimate.

Management left FY24 guidance unchanged.

The broker updates its financial model, resulting in a $6.30 target up from $6.00. The Equal-weight rating is maintained. Industry view: Attractive.

Sector: Materials.

Target price is $6.30.Current Price is $7.46. Difference: ($1.16) - (brackets indicate current price is over target). If SFR meets the Morgan Stanley target it will return approximately -18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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