Things are simply falling into the right places and at the right timing, suggest analysts at Deutsche Bank. They believe alumina prices are set for a run when capex is coming to an end for Alumina Ltd. There's no shortage of bauxite but the stockbroker speculates it will take some time before additional supply might spoil this party.
A general review of metals prices has led to an increase in the long term assumption to US$390/t for alumina. Earnings forecasts have risen. Valuation/target goes up to $2.25 from $1.55 prior. Upgrade to Buy from Hold. On the stockbroker's current projections, this stock is about to turn into a yield stock with dividends projected to make a come-back next year.
Target price is $2.25 Current Price is $1.68 Difference: $0.575
If AWC meets the Deutsche Bank target it will return approximately 34% (excluding dividends, fees and charges).
The company's fiscal year ends in December. Deutsche Bank forecasts a full year FY14 dividend of 0.00 cents and EPS of minus 1.08 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 154.52.
Zess hope this helps !!!!
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