BA-Merrill Lynch rates as Downgrade to Neutral from Buy, Low Risk (3) - Target $0.55 (was $0.80). While June quarter production met expectations BA-ML notes guidance for the full year was weaker. To reflect the update the broker lowers earnings forecasts and price target.
The Red October development may tae longer than previously expected and there appears a lack of underground ore to support production, so the broker downgrades to a Neutral rating.
SAR Price at posting:
41.4¢ Sentiment: None Disclosure: Held
