DJ Opportunity Beckons to Buy CSR Stock, Says Deutsche Bank --...

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0	DJ Opportunity Beckons to Buy CSR Stock, Says Deutsche Bank -- Market Talk	Column 1 0 CSR		$2.815-$0.125 (-4.3%)	$2.81$2.82

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0		28 Sep 2015 12:40:04

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0240 GMT [Dow Jones] Deutsche Bank says building materials company CSR's (CSR.AU) falling share price has created a strong buying opportunity, partly because it implies the aluminum business is valued at zero. Also, CSR's current share price implies the building products business is valued at 7.3 times FY16 enterprise value to Ebitda, which is a 25% discount to the global average of 9.7 times, analyst Emily Smith says. She notes that the net present value of CSR's aluminum business is sensitive to the outcome of the potential power contract renegotiation from calendar year 2017. "We believe there is the potential for CSR to renegotiate a lower electricity price, possibly in the middle of zero and the currently contracted A$230/ton increase," Smith says "This would increase the valuation by 13 cents/share or A$65 million." A flat outcome would add 45 cents/share to the aluminium business's net present value. CSR last traded at A$2.96. ([email protected]; @dwinningWSJ) Editor: KLH(END) Dow Jones Newswires September 27, 2015 22:40 ET (02:40 GMT)

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