citi rates lgl as buy

Citi rates LGL as Buy
LGL - Lihir Gold Ltd
Lihir has announced some new expansion plans and analysts at Citi are a bit lukewarm about it, arguing some of it was already known. They do point out, however, if all growth prospects were to be factored into their valuation model, the value would rise to $2.20 per share compared with $1.66 at present.

Citi analysts find the pushing of the company's growth profile a bit "curious". They suspect the company is trying to mask the lack of new growth for 2010-11 as well as the fact that the share price hasn't done much lately.

Maybe the company feels vulnerable (take-over target?)?

Target price is $3.60 Current Price is $2.78 Difference:$0.82 - (brackets indicate current price is over target). If LGL meets the Citi target it will return approximately 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Citi forecasts a full year FY10 dividend of 4.21 cents and EPS of 17.80 cents . At the last closing share price the estimated dividend yield is 1.51%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.62.