Aeris Resources Ltd (ASX: AIS) shares could be dirt cheap right now.
That's the view of analysts at Bell Potter, which see significant value in the ASX mining stock at current levels.
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Big returns on offer with this ASX mining stock
According to the note, in response to the company's half-year results, the broker has retained its buy rating and 23 cents price target on its shares.
Based on its current share price of 12 cents, this implies potential upside of 92% for investors over the next 12 months.
While the broker wasn't overly impressed with the copper miner's results last week, it believes that a change of fortunes is around the corner. In light of this, the broker thinks that now is the time to buy this ASX mining stock.
For example, after recording a loss after tax of $18.8 million in the first half, the broker expects a stronger second half to lead to Aeris reporting a full-year loss of just $2 million.
It then forecasts a profit after tax of $43 million in FY 2025 and $61 million in FY 2026.
If these estimates prove accurate, then the ASX mining stock is trading at just 2.6x FY 2025 earnings and 1.8x FY 2026 earnings.
Bell Potter also believes the company could become a takeover target. It concludes:
AIS is a copper dominant producer with all its assets in Australia. Its near-term outlook is highly leveraged to increasing copper grades and production at the Tritton copper mine. Successful delivery offers significant upside to the share price and a strategically attractive asset in Tritton, making AIS vulnerable as a corporate target. Our target price is unchanged at $0.23/sh. Retain Buy.
