Jefferies analysts have raised their price target on Australia’s Fortescue (ASX:FMG) from A$19.50 to A$24.30 per share, while upgrading their rating from ‘hold’ to ‘buy’.

The revision sparked an upward shift in Fortescue’s share prices, which climbed 2.2% in the most significant intraday boost since September 15.

The brokerage is cautiously optimistic on the iron ore sector, even with anticipated softer near-term macro in China.

The FY24 EPS forecasts for the mining company have also been revised to $1.67, subsequently projecting an FY24 dividend of A$1.62 per share.

Presently, out of 14 analysts, two rate Fortescue’s stock as ‘buy’ or higher, one as a ‘hold’, and 11 analysts rate it ‘sell’ or lower, with a median price target of A$16.50 based on LSEG data.

Fortescue’s stock is down 2% for the year to date.

Fortescue is a mining company primarily involved in the exploration and extraction of iron ore.