It's a good day to be invested in Fortescue Metals Group Limited (ASX: FMG) shares. Or, at least, it was.
The stock soared 0.9% earlier this morning to ink a new 52-week high of $23.12. That's the highest it's been in 17 months.
However, the iron ore giant's notable gains didn't last. The Fortescue share price has slipped to trade at $22.91 at the time of writing, 0.04% lower than its previous close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 0.88% at the time of writing while the S&P/ASX 200 Materials Index (ASX: XMJ) is up 0.76%.
So, what might be going on with Fortescue shares today? Let's take a look.
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What's going on with Fortescue shares today?
Fortescue popped to long-forgotten heights before dropping to near its previous close on Friday morning amid Goldman Sachs' backhanded outlook.
The top broker today said it saw the ASX mining sector as "more fairly valued" amid China's reopening.
It also noted it wouldn't be surprised if share prices in the sector retraced this quarter but was expecting big things for miners in the second half of this year as commodity prices recovered.
That sounds like good news for Fortescue shares, right? Unfortunately not. The stock has been downgraded by the broker.
Goldman Sachs is bearish on the iron ore giant, saying spending on decarbonisation will likely take its toll on the company's bottom line and future dividends.
The broker now has a $13.40 price target on Fortescue shares – representing a potential 41% downside.
It's also worth noting the stock has been on a roll this week. Even considering today's slump, the company's share price is still 5% higher than it ended last week.
That's despite the company's chief financial officer handing in his resignation on Monday. Ian Wells is just the latest executive to walk away from the ASX 200 giant.
