Deutsche Bank 19/05/2009 3 Hold $0.08 - 20.0%Babcock & Brown...

Deutsche Bank 19/05/2009 3 Hold $0.08 - 20.0%
Babcock & Brown Power has sold its "onerous" Osborne contracts to Origin ((ORG)), the broker reports. This is good for the balance sheet but with no further news on solvency issues BBP is not out of the woods yet.
In the meantime management has downgraded earnings guidance from $300-310m to $260-270m, but the broker is forecasting $234m believing BBP to be a story of survival rather than profit.

The broker retains Hold at a target of 8c.