The Sandfire Resources Ltd (ASX: SFR) share price was a positive performer on Wednesday.
The copper miner's shares ended the day almost 3% higher at $5.77.
This compares favourably to the ASX 200 index, which closed the day almost 0.9% higher at 7,015.6 points.
Can the Sandfire share price keep rising?
One leading broker that believes this copper miner's shares have plenty left in the tank is Morgans.
According to a note from the start of this month, the broker has put an add rating and $6.50 price target on its shares.
Based on the current Sandfire share price, this implies potential upside of almost 13% over the next 12 months.
Past the point of peak investor concern
While Morgans acknowledges that things have been tricky for Sandfire over the last 12 months, it believes the worst is now behind it. The broker commented:
SFR has been a complex proposition as it navigates major change to its production base/geographic exposure, balance sheet and share register. The halving in European power prices (from peak), strong execution at Motheo (mitigating 'Africa risk') and the shoring up of the balance sheet suggests SFR is well past the point of peak investor concern, reflected in recent strength.
Another positive, according to Morgans, is that the ASX 200 index will soon lose a fellow copper miner, OZ Minerals Limited (ASX: OZL). It is in the process of being acquired by BHP Group Ltd (ASX: BHP).
If this deal completes, it will leave Sandfire as the only major copper producer on the ASX 200 index. It suspects that this could lead to "the likely re-cycling of copper hungry funds out of OZL by mid-year – support ongoing interest/ price performance in SFR."
A final positive is that with the broker forecasting an improvement in margins in the near future, it believes that dividends could be back on the menu soon. It adds:
We forecast growth in MATSA's margins into FY24 and in group EBITDA through to FY25, supporting incremental de-gearing and the ability to re-consider dividends from FY24.
All in all, the broker appears to believe this makes the Sandfire share price good value at current levels.
