Less than two weeks ago the stock was downgraded to Reduce, this is now taken one step further to Sell.
Aspect Huntley points out a slower than expected start-up at Jinfing reduces its FY07 earnings forecast by just over a quarter to 18cps. As a result of this the researcher’s valuation drops 20 cents to $4.05.
But that’s not the whole story with the researcher explaining the downgrade to Sell also reflects recent strong share price appreciation. It is, the report states explicitly, not a comment on the quality of the company.
The researcher believes near term production and exploration/development upside remains one of the key attractions of this stock.
Current Price is $6.80. Target price not assessed.