abm amro buy reccomendation

Monday 23 April 2007

We value VCR using a DCF valuation (risk free rate of 5.75%, WACC of 15.8% and a
terminal growth rate of 3.0%) at A$1.41 (previously A$1.50). We have set our price
target at a 15% discount at A$1.20, to reflect where we believe the stock will trade in
the next six months, assuming achievement of key milestones.