ubs

1254 [Dow Jones] STOCK CALL: UBS cuts Sigma (SIP.AU) FY08 profit forecast to A$86 million, EPS estimate by 13% to 11.1 cents, price target to A$2.16 from A$2.60; follows SIP cut in earnings forecast to A$88 million-A$93 million. "Though this implies modest 2H margin recovery, it also appears realistic and we see limited downside risk from here," UBS says in a client note. "...the outlook appears realistic and, if FY08 guidance is met, then SIP is trading well below market and intrinsic value. Longer term, '08 generic reforms remain a risk." Keeps buy rating. Last trade down 5.5 cents at A$1.38