broker recommendations for pru

A mixed bag of opinions and quite a few price targets around $1. PRU seems to be a confusing stock for the analysts.
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Broker Recommendations for PRU

CIMB Securities 03-Sep-13

CIMB has reduced FY14-15 earnings estimates in the wake of the FY13 results. Given the increase in the spot gold price in recent weeks, there is upside risk. As a result, the broker has unwound the 20% discount to NPV and applied a 20% premium to arrive at a target price of 74c against 50c previously.

The Neutral rating is maintained. A clear mine plan beyond 2014 is the key non-gold price related factor that would make the broker revisit the recommendation assumptions.
Neutral

Macquarie 02-Sep-13

With all-in costs of US$1,100-1,200/oz forecast in the September quarter, Macquarie notes Perseus will remain a volatile stock, tied to movements in the gold price.

The broker is paying attention to the potential of the revised Edikan mine plan, to be released in September, which should outline a way to improve cash generation from the mine.

The Outperform rating and $1.00 price target are maintained.
Outperform

Citi 02-Sep-13

Citi looks forward to a period of consolidation for Perseus after a year of disappointment and operational difficulty at Sissingue. Cash generation consistency should continue from the core asset Edikan in Ghana. Sissingue remains on ice pending a more certain outlook for gold.

The Sell rating is retained and the target price is raised to 70c from 50c, weighted towards NPV given the expected loss in the year ahead.
Sell

BA-Merrill Lynch 02-Sep-13

Perseus' result beat at the headline but fell short at the operational level due to higher costs. Costs are expected to be reduced and FY14 production guidance has been maintained, the broker notes. PRU has hedged a third of its next 18 months of production against the gold price while a decision on Sissingue has been pushed out to early next year.

The broker retains Neutral and $1.00 target.
Neutral


JP Morgan 02-Sep-13

Perseus' result was strictly a beat but only on currency gains. Operating cashflow was nevertheless better than expected. The broker expects PRU's price to track the gold price with low gearing and operational leverage providing support. Cost reductions at Edikan will help but the scope for reducing overall cost is limited, the broker warns.

Target rises to 80c from 55c but Neutral retained.
Neutral


UBS 02-Sep-13

Perseus Mining turned in a mixed result, outpacing the broker on some metrics and falling short on others.

The broker says the earnings profile hasn't changed, the outlook for the gold price remains soft and FY14 looks subdued. UBS reckons downside is limited but delivery could be two years out.

The broker retains a Buy rating and lifts the target price to $1 from 90c to reflect a 9% rise in net present value.
Buy


Credit Suisse 02-Sep-13

Credit Suisse found few items in the result to spur interest, noting there is more clarity in the quarterly production reports. Production guidance was reiterated and the Edikan mine plan is expected to be released in September.

The Outperform rating and $1.00 price target are maintained.