Ferrexpo - Riding into headwind

Ferrexpo - Riding into headwind



8 серпня 2012 года
Конкорд Капитал

Полтавский ГОК (PGOK)


We reinitiate coverage of Ferrexpo with a HOLD recommendation and 12M target price of USD 3.79 per share which implies a 29% upside. Our valuation of Ferrexpo is more conservative than consensus mainly because we place a higher emphasis on political risks related to Ferrexpo’s major shareholder which might be reflected in suspension of the company’s largest project of recent years.
The stock declined 31% YTD, and an even better entry point might appear in August on continuing weakness of the global iron ore market and possible negative developments in a conflict with previous owner of Ferrexpo’s key asset. On the other hand, we believe there is a high possibility of the iron ore market rebounding in 2H12, which can serve as a strong stock driver: Ferrexpo’s beta is larger than peers’ one. Moreover, we see the company remaining a solid business, operating at full mining capacity and holding its market positions.

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Источник: Конкорд Капитал

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