Shares of the Australian diversified miner, South32 (ASX:S32), soared by as much as 4%.

Current performance indicates the company’s potential for its best day since September 15th, provided the gains remain firm.

The firm has been upgraded to a ‘buy’ status from a ‘neutral’ rating by analysts at Citi Research.

Citi predicts that South32’s share price will rebound from recent lows as the major spot commodity prices are reportedly significantly higher than the market’s anticipations for FY24.

The company’s EPS estimate was significantly reduced post the company’s announcement of the FY24 cost forecast.

With the rising prices of coking coal and alumina, the consensus EPS estimates are expected to surge, opines Citi.

Citi further added that South32 has the highest operating leverage amongst the diversified miners.

According to LSEG data, out of 15 analysts, 10 have rated the stock ‘buy’ or higher, whilst five have stuck with ‘hold.’ The median PT stands at A$4.08.

As of the last close, the stock had shed 18.3% year-to-date.

South32 (ASX:S32) is a global diversified miner with operations in several commodities including aluminium, nickel, silver, zinc, lead, and thermal coal.