Equinox Minerals "buy," target price raised9:26a.m. - UBSNEW...

Equinox Minerals "buy," target price raised
9:26a.m. - UBS

NEW YORK, June 12 (newratings.com) - Analysts at UBS maintain their "buy" rating on Equinox Minerals Ltd (EYO1), while reducing their estimates for the company. The target price has been raised from C$5.75 to C$6.00.

In a research note published this morning, the analysts mention that the long-term prospects of the Lumwana project are bright, presenting significant potential for production expansion via exploration upside and plant upgrades. Although Equinox Minerals’ operating costs might rise in the near term due to tight power issues at Zambia, the availability of power is expected to improve by 1H09, the analysts add. The EPS estimates for 2008 and 2009 have been reduced from C$0.26 to C$0.10 and from C$0.97 to C$0.69, respectively.