"Macquarie rates as Upgrade to Neutral from Underperform (3) - Macquarie has upgraded the recommendation to Neutral from Underperform on valuation grounds, believing the underperform rating has run its course and the stock is more attractive now. The iron ore price appears to have stabilised around US$135/tonne and the broker does not expect much in the way of supply additions in the first half. Macquarie believes the iron ore price is around a 'fair' level for the current half-year, given the outlook for Chinese steel production.
"As of Mar 29, 2013, the consensus forecast amongst 20 polled investment analysts covering Atlas Iron Limited advises that the company will outperform the market. This has been the consensus forecast since the sentiment of investment analysts improved on Mar 12, 2013. The previous consensus forecast advised investors to hold their position in Atlas Iron Limited.
The 21 analysts offering 12 month price targets for Atlas Iron Limited have a median target of 170.00, with a high estimate of 357.00 and a low estimate of 115.00. The median estimate represents a 69.15% increase from the last price of 100.50."
Despite the positive news, what I struggle to understand is the illogical frequent change in the 12-mth price targets. It's not as though there had been equally frequent price sensitive announcements from AGO. I wonder if their forecasts will change again in 3 weeks' time. If so, then what's the point in bothering with 12-mth price targets? Maybe it'll all be clear to me one day.
AGO Price at posting:
$1.01 Sentiment: Buy Disclosure: Held
