UBS last updated on Deterra Royalties in March but has returned with a new analyst to reinstate coverage with a Neutral rating (previously Buy) and a $4.20 target ($5.05).

The collection of royalties from iron ore production in the Pilbara, the largest being BHP Group's ((BHP)) Mining Area C, leaves Deterra leveraged to both iron ore price and production volumes, the broker notes, thus providing a less volatile, higher value earnings stream.

Note that back in March, iron ore was trading at around twice the current price.

Sector: Materials.

Target price is $5.05.Current Price is $4.20. Difference: $0.85 - (brackets indicate current price is over target). If DRR meets the UBS target it will return approximately 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena