UBS rates TGS as Buy (1) - 2014 earnings were lower than 2013 as...

UBS rates TGS as Buy (1) -

2014 earnings were lower than 2013 as weaker copper prices offset a lift in output. UBS observes gearing remains uncomfortably high.

The broker expects a major refinancing is likely this year but, with the copper price sagging, the SX-EW plant will need to demonstrate stable output to support a deal.

UBS retains a Buy rating based on valuation but believes there will be little investor interest until the refinancing overhang is resolved. Target is steady at 20c.