The Australian Financial Review PUBLISHED: 05 May 2011 Online Broker Watch Jamie Freed
The attempt by China Guandong Nuclear Power to lower its bid for Extract Resources's largest shareholder, British-listed Kalahari Minerals, has led Macquarie Equities to lower its share price target for Australian-listed Extract to $9.60 from $10.82, although it has upgraded its recommendation to "outperform" from "neutral".
Macquarie said while the recent increase in the forecast capital cost of Extract's Husab uranium project in Namibia was a negative, corporate interest was now the overriding driver in Extract.
Merrill Lynch said the fact CGNP was only looking to lower the offer price for Kalahari by 7 per cent, after the events at Fukushima in Japan, was a positive for Extract and provided a lift for the uranium market more generally.
Merrill Lynch has also upgraded to a "buy" recommendation, with a price target of $9.50. Extract shares closed at $7.63 on Wednesday.
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