Credit Suisse rates BND as Outperform - Initiation of Coverage (1) - Credit Suisse has initiated coverage on Bandanna Energy with an Outperform rating, viewing the group as the most advanced of the junior coal plays in the Australian market.
There are a number of potential positive catalysts including the EIS and DFS for the Dingo West and Springsure Creek projects and potential equity sell-downs for both projects. The broker expects these will support the share price.
Target price is $0.85 Current Price is $0.34 Difference: $0.51 If BND meets the Credit Suisse target it will return approximately 150% (excluding dividends, fees and charges).
The company's fiscal year ends in June. Credit Suisse forecasts a full year FY12 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.67. Market Sentiment: 1.0
BND Price at posting:
35.5¢ Sentiment: Buy Disclosure: Held
