0928 [Dow Jones] STOCK CALL: Babcock & Brown (BNB.AU) target...

0928 [Dow Jones] STOCK CALL: Babcock & Brown (BNB.AU) target price slashed to just 32 cents from A$1.12 by Citi, after cutting EPS forecast by 38% in CY08, 28% in CY09 and 15% in CY10. Target price set at just 50% of reduced estimate of BNB's net tangible assets "given falling asset values and high gearing." Says good price from sale of one of BNB's "crown jewel" assets, the Enersis wind farms, is offset by expected further writedowns from GPT JV portfolio, and analyst says slowing in business activity, "suggest the group's interest coverage could breach a debt covenant either this year or next." (WEL)