panic = opportunity, page-45

They are all coming out, one by one...


RBS Australia 23/06/2010 3 Hold $0.46 3.4%

The broker notes Elders is now expecting a loss of up to $14m compared to previous guidance for a profit of $49m.

While RBS admits it was expecting some sort of downgrade, it wasn't expecting anything anywhere near as big as what has been put out.

This opens a big can or worms, says the broker, who notes there are now credibility issues, as well as structural and balance sheet concerns.

With the broker now relieved of any confidence it may have had in the stock, it has substantially lowered its forecasts and says it now struggles to recommend the stock to investors. Hold maintained, but the price target is slashed to $0.46 (from $0.94).

Target price is $0.46 Current Price is $0.82 Difference: minus $0.36 (current price is over target).
If ELD meets the RBS Australia target it will return approximately minus 44% (excluding dividends, fees and charges - negative figures indicate an expected loss).