The last few weeks certainly haven't been good for the Fortescue Metals Group Limited (ASX: FMG) share price.
The iron ore producer's shares have tumbled almost 14% since this time last month as iron ore prices began to fade.
But this sizeable decline could be a buying opportunity according to a couple of Australia's leading brokers.
A research note out of Credit Suisse this morning reveals that its analysts have retained their outperform rating with a slightly lower price target of $6.40.
With its shares currently priced at $5.00, the investment bank's price target implies potential upside of 28% for its shares over the next 12 months.
According to the note, the broker is bullish on Fortescue despite its view that iron ore prices will come under pressure as Chinese demand wanes.
Credit Suisse isn't alone in this view. A note out of the equities desk of Macquarie this morning reveals that its analysts have retained their outperform rating on Fortescue as well, despite revising their low grade iron ore forecasts lower.
Macquarie has a price target of $6.20 on Fortescue's shares, representing a potential return of 24% for investors.
Should you invest?
I would have to agree with Credit Suisse and Macquarie on Fortescue. Around a month ago I didn't see a lot of value in its shares, but following their decline, I think the risk/reward on offer has become sufficient to consider an investment.
While it isn't my first pick in the industry and I would choose BHP Billiton Limited (ASX: BHP) ahead of it due to its diversification, I do think it could be a great option for investors looking to gain exposure to the resources sector.