Citi has downgraded Energy Resources to Hold from Buy to reflect the recent share price rally. The broker sees better value elsewhere in the sector over the next year.
It has slashed 2008 earning forecasts a whopping 47% to A$83 million to reflect mark-to-market losses on US$ debt and lower realised prices.
It has cut 2009 earnings forecasts 16% to A$279 million and downgraded production forecasts.
It maintains its $18.60 target price. Sector: Energy.
Target price is $18.60.Current Price is $16.80. Difference: $1.80 – (brackets indicate current price is over target). If ERA meets the Citi target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).