s p equity research upgrades lihir gold

S&P Equity Research upgrades Lihir Gold (Nasdaq: LIHR) from Sell to Hold, on valuation.

S&P analyst, L. Larkin, says, "Following a recent sharp decline in the price of the ADSs, we believe LIHR is more reasonably valued, selling at 25.2X our '08 estimate of $1.10. We are keeping our P/E-based 12-month target price at $28. Long-term, we see LIHR boosted by the continuation we expect in the bull market for gold, increased gold production, the addition of the Ballarat mining property, lower unit costs, and the elimination of its gold hedges