Below is the Bell Potter report... I like the title as I think...

Below is the Bell Potter report... I like the title as I think it reflects quite well what all of us have been feeling about these results...

Good to see their BUY recommendation with a (low IMHO)) price target of $0.43.

Cautious guidance masks positive outlook
􀀃 FY09 result in line with previous guidance Boarts FY09 result was lower than our above consensus estimates but was in line with EBITDA guidance issued in August. Our underlying net profit forecasts are broadly unchanged with slightly lower EBIT from higher corporate costs offset by
lower interest. We expect FY10 revenue growth of +30% versus guidance of +15%. Our EBITDA forecast of US$226m is struck off a 65% drill rig utilisation forecast and flat pricing.

􀀃 FY10 guidance appears conservative
Boarts FY10 EBITDA guidance of US$170m appears conservative to us given the leverage to a turnaround in exploration as mining capex begins to pick-up. UBS
expects a +45%y/y rise in mining capex in 2010, supported by higher commodity and metals prices. Importantly, the addition of 1,000 new hires in the past 6 months in anticipation of higher activity underpins our expectation of upside to current earnings guidance.

􀀃 Trading at 40% discount to peers
Based on our forecasts, Boart is currently trading on 10x FY10E EPS, reflecting an unwarranted 40% discount to peers. We believe this does not properly reflect the companys strong earnings leverage to a recovery in mining capex as end markets conditions continue to improve.

􀀃 Valuation / Price target A$ 43c (was A$ 45c)
Our DCF based valuation falls due to higher capex and A$ currency forecasts.