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2347 GMT [Dow Jones] STOCK CALL: JPMorgan cuts Boart Longyear (BLY.AU) to Neutral from
Overweight after capital raising. Keeps 33 cents target. "While the capital raising
was well flagged and, in our view, necessary to repair the balance sheet, we were
disappointed by the size and subsequent dilution," JPM says in client note.
"The full raising will see the share count more than triple, diluting much of the
upside. Based on our current forecasts, we believe the stock is now trading at around
fair value of 26-32 cents a share, based on a PE range of 10-12 times on our current FY11
earnings. We view BLY as attractive value around 20 cents and expensive above 40
cents." Last trade 29 cents. (ABH)