GXY - GALAXY RESOURCES LIMITEDUBS rates GXY as Upgrade to Buy from Neutral (1) - The company has updated the definitive feasibility study for the Sal de Vida project and announced the sale of the northern tenements to help fund its development.
Capital expenditure guidance is lifted to US$474m. The agreement with POSCO for the sale of the northern tenements provides over half of this requirement.
UBS upgrades to Buy from Neutral. Continued de-risking of Sal de Vida could provide further upside, in the broker's view. Target is raised to $3.95 from $3.10. Target price is $3.95 Current Price is $3.49 Difference: $0.46 If GXY meets the UBS target it will return approximately 13% (excluding dividends, fees and charges). Current consensus price target is $3.78, suggesting upside of 8.2%(ex-dividends)The company's fiscal year ends in December. Forecast for FY18: UBS forecasts a full year FY18 dividend of 0.00 cents and EPS of 7.00 cents .At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.86. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.7, implying annual growth of 30138.1%.Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.Current consensus EPS estimate suggests the PER is 27.5.Forecast for FY19:
[/table][/table]
GXY Price at posting:
$3.64 Sentiment: Hold Disclosure: Held
