The Fortescue Metals Group Limited (ASX: FMG) share price has had a tough 2021 so far. Shares in the major iron ore miner have fallen 9.2% to close at $22.52 per share on Thursday.
Investors will be hoping for a turnaround in fortunes before the year is out. So, what's the outlook for the ASX mining giant in 2021?
What's in store for the Fortescue share price?
Let's start with the current state of play. Shares in the Aussie miner are still up 26.1% in the past 12 months and 356.8% in the last 5 years, not including the role that a hefty dividend plays in total returns. So, it's not all doom and gloom for shareholders right now.
However, a falling iron ore price, largely driven by weaker Chinese demand, has hurt the Fortescue share price in recent weeks. China is a major buyer of Aussie iron ore as a key input into the steel production process. That means when China decides to stop buying, ASX iron ore shares like Fortescue tend to perform poorly.
One leading broker thinks that the outlook for the Aussie mining share isn't all bad. A recent equity research report from JP Morgan reinstated a $30 per share price target and overweight rating. Given the current $22.52 share price, this implies a potential 33.2% upside based on the broker's target.
JP Morgan analysts cited Fortescue's strong Q4 2021 results and a net cash position above their own and market expectations. While the Fortescue share price has been under pressure in 2021, clearly some in the market think there is still an attractive investment thesis to be made.
Foolish takeaway
The Fortescue share price has been on a sustained bull run for a number of years now. While 2021 hasn't been panning out as investors would have hoped, the Aussie mining share is still up 26.1% in the last 12 months and trading on an 11.0% dividend yield.
