Credit Suisse rates GBG as Neutral Monday, March 4, 2013 - 12:18 The most meaningful part of the first half result was the Karara loss of $2m on DSO sales in the December quarter as a result of shipping low grade product, the broker contends. Credit Suisse finds Gindalbie a high risk/reward stock and at the moment the risk bit is winning.
The target price is reduced to 26c from 32c and the Neutral rating is maintained.
Target price is $0.26 Current Price is $0.24 Difference:$0.02 - (brackets indicate current price is over target). If GBG meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Credit Suisse forecasts a full year FY13 dividend of 0.00 cents and EPS of -0.97 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is -24.74.
