DJ MARKET TALK: Goldman Sachs JBWere Keeps Buy On Boart
0041 GMT [Dow Jones] Goldman Sachs JBWere keeps Buy, A$1.26 target, on Boart Longyear (BLY.AU). "BLY share price suggests the company is close to breaching the covenants on its debt or, even worse, is unable to service its debt but our analysis shows neither is the case and, in fact, the company is far from either dire situation," GSJBW says in a client note. "We acknowledge the significant headwinds that BLY faces as demand for its products and services softens and earnings are expected to fall in 2009 and potentially 2010 also; but on a 2008 PE ratio of close to 1x and with the major refinance still 12 months away we believe this is more than factored into the share price." Last trade down 1 Australian cent or 5% to 19 cents. (ABH)
