FN ArenaUBS rates BJT as Buy - Target $0.57 (was $1.12). The...

FN Arena

UBS rates BJT as Buy - Target $0.57 (was $1.12). The group has revised down its asset values and announced a cut to distributions, while the broker notes the fall in the Australian dollar is a positive for earnings.

Given ongoing issues in the market the broker retains its Buy but cautions the stock is unlikely to trade up to full value prior to any resolution of management rights issues.

Target price is $0.57 Current Price is $0.30 Difference:$0.27 - (brackets indicate current price is over target). If BJT meets the UBS target it will return approximately 90% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June. UBS forecasts a full year FY08 dividend of 12.90 cents and EPS of 12.80 cents. At the last closing share price the estimated dividend yield is 43.00%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.34.

Market Sentiment: 0.7