macquarie

FYI

1159 [Dow Jones] STOCK CALL: Macquarie raises Boart (BLY.AU) to Outperform from Neutral, target to A$0.42 from A$0.23 and FY10-FY11 EPS estimates by 6% to 1.6 U.S. cents and by 10% to 2.7 cents, respectively, after capital raising. "Traditional investment theory dictates buying into cyclicals when things seem unable to get any worse and when there are signs of improvement on the horizon," Macquarie says in a client note. "We are at this point for BLY and valuation multiples are undemanding, relative to peers. It is logical to expect some indigestion, given the size of the capital raising. However, we believe focus will turn to the extent of the exploration recovery and BLY's earnings pick-up in FY10-11." Last trade up 2.5 Australian cents to 32 cents. (ABH)