Hanson Westhouse starts Polo Resources coverage with ‘buy’
Broker Hanson Westhouse initiated coverage on Polo Resources PLC (AIM: PRL) with a ’buy’ rating and a target price of 5.63 pence a share per, a 43 premium to the current level, as it believes this substantially undervalues the assets held by the company.
In a note, it said Polo recently purchased stakes in Extract Resources (ASX, TSX: EXT), Berkeley Resources (ASX: BKY) and A-Cap Resources (ASX: ACB), which are all pre-production U3O8 companies, a marked change in strategy and direction for Polo which up until now, had been focused on coal.
“We expect Polo to make further investments in uranium companies over the coming months, including a potential increase in its stake in Extract Resources,” the broker added.
EXT Price at posting:
$4.91 Sentiment: None Disclosure: Not Held
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