new broker update

this will be the first of many who will re-rate Atlas, I expect a shorters cover rally in the near future.

Excerpts From Today's Broker Call
Thursday, 25 July 2013

AGO - ATLAS IRON LIMITED
CIMB Securities rates AGO as Outperform (1) - Atlas Iron had a record quarter for sales of iron ore in June - 2.2wmt, which takes the total for FY13 to 7.4wmt. CIMB has reiterated the Outperform rating, with 44% potential upside to the target price of $1.20.
FY13 FOB cash costs of $49-50/t were at the upper end of guidance. CIMB has reduced the FY13 earnings estimate by 21% following the mark to market of iron ore prices for the second quarter. FY14 and FY15 forecasts are maintained as near-term mine closures of Mt Dove and Pardoo are offset by the ramp up of Abydos and Mt Webber.

Despite ongoing uncertainty regarding execution of the Horizon 2-30mtpa strategy, the broker thinks the current share price is trading at a material discount to valuation in terms of the initial Horizon 12-14mtpa strategy, which has largely been de-risked.

Target price is $1.20 Current Price is $0.91 Difference: $0.29 If AGO meets the CIMB Securities target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June. CIMB Securities forecasts a full year FY13 dividend of 3.00 cents and EPS of 6.00 cents . At the last closing share price the estimated dividend yield is 3.30%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.17.

Market Sentiment: 0.6

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 4.1, implying annual growth of - 131.5%.Current consensus DPS estimate is 2.3, implying a prospective dividend yield of 2.5%.Current consensus price target is $ 1.19, suggesting upside of 30.2%(ex-dividends).Current consensus EPS estimate suggests the PER is 22.2.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources