STOCKS NEWS EUROPE-European Nickel up, Evo starts as "buy" http://uk.reuters.com/article/idUKLDE69O0UF20101025
European Nickel Plc ENK.L 39.00p +2.00+5.41% 09:53:12 BST Mon Oct 25, 2010 10:44am BST Shares in European Nickel (ENK.L) rise 6.8 percent after Evolution Securities initiates its coverage on the nickel producer with a "buy" rating and target price of 55 pence.
"This is very much a base case number and serves to highlight that we see no downside in buying the shares now," Evolutions Securities says in a note.
The broker says its sees a longer term valuation of 151 pence once final permits come through, debt finance is finalised, and the company is well on the way with construction of Caldag project in Turkey.
"Importantly, with the Acoje project in the Philippines as the next cab off the rank, there should be significant upside over and above the 151 pence a little further out."
