Huntleys have put a "reduce" rating on ZFX (see Friday's update) sighting recent dissapointing production results and recent share price appreciation.
Funny thing is Huntleys have been neutral to bearish on ZFX since it was $7. They have consistently made the wrong call on this stock and yet they still wont admit they have been out.
On the flip side, they also suggest the stock could be worth as much as $30 if current spot prices for zinc and lead hold.
"ZFX is highly leveraged to zinc and lead. At spot prices of US$1.85/lb zinc and US$0.72/lb lead, our valuation rises to an incredible $30.00 a share."
They also stated that it is normal for mining Co.s to trade on very low PEs when commodity prices are high.
I dont know what anyone else thinks (and by the way Im new so Im keen to hear what you think of their call) but to me it still smells like they are justifying previous bad calls on the stock.
ZFX
zinifex limited
