The broker has upgraded its rating after realising its assumptions for the company were too conservative.
It now sees the company achieving its target of unregulated revenues accounting for 30% of total revenues by 2010, while it sees margins as contracting by less than it had previously expected.
Valuation has increased to $1.55 from $1.35.
Target price is $1.55. Current Price is $1.28. Difference: $0.27 – (brackets indicate current price is over target). If SKICA meets the ABN Amro target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).