The Fortescue Metals Group Limited (ASX: FMG) share price has rocketed over the last 30 days. Its gains have likely left some investors wondering if now is a good time to lock in some profits.
This time last month, the Fortescue share price was trading at $15.87. As of Monday's close, it's sitting at $21.03. That marks a notable 32.5% gain in that time.
So, where might the S&P/ASX 200 Index (ASX: XJO) iron ore stock go from here, and should shareholders cash in some chips following its rally? Here's what experts think.
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Should investors bail on Fortescue shares after recent gains?
The Fortescue share price has taken off over the last few weeks. Could its upwards trajectory continue? Well, that depends on who you ask.
Argonaut's Harrison Massey thinks not. He said, courtesy of The Bull:
China's zero COVID-19 policy can impact demand for iron ore and slow its economy. We don't expect China's pandemic policy to be removed in the short term.
Investors may want to consider taking a profit at these levels.
The expert's warning follows a record-breaking month for the iron ore price. It lifted from around US$80 per tonne to approximately US$100 per tonne in November.
The commodity's rally was arguably sparked by the hope China could relax some of its strict COVID-19 restrictions. While further outbreaks might have dashed some hope of a Chinese reopening, it hasn't seemingly dampened the spirits of Red Leaf Securities' John Athanasiou.
Athanasiou labelled the stock a hold last week, commenting, as per The Bull:
We believe the [Fortescue] share price has also been benefiting from speculation that China will ease COVID-19 restrictions. Consequently, this may push up the iron ore price.
In addition to a favourable outlook on iron ore prices, Athanasiou was also impressed by Fortescue's latest quarterly report.
It posted a 4% increase in iron ore shipments, lifting to 47.5 million tonnes, and an average revenue of US$87 per dry metric tonne.
