jpmorgan upgrades bly

STOCK CALL: Boart Longyear (BLY.AU) upgraded to
Overweight from Neutral by JPMorgan with target price raised to A$0.39 from
A$0.32 as analyst sees a more positive macro outlook with improved demand
profile for its drilling services. JPM expects FY09 net profit to fall 94% to
US$10 million, with EBITDA from drilling services down 60% and drilling
products down 71%, but notes "we think there is little doubt that FY09 should
represent the trough for BLY's earnings with the outlook for exploration
expenditure already much improved." Notes improved commodities price outlook,
with gold and copper prices supportive of future exploration, and junior
explorers raising more equity in 2H09 than in any period since 1H06, which
should also fund exploration.