http://www.moneycontrol.com/india/news/marketoutlook/sesagoacommodityprices/morganstanleyputsoverweightratingsesagoa/market/stocks/article/244606
Morgan Stanley puts overweight rating on Sesa Goa Morgan Stanley has come out with a report on Sesa Goa with an overweight rating and a price target of Rs 1,478, reports CNBC-TV18. According to the report, Sesa Goa has lagged the Sensex by 34% since June due to volatile commodity prices. The report mentions that on the back of a strong outlook for ore prices, this company is likely to have a strong earnings trend. Morgan Stanley expects a 15% (YoY) increase in contract prices in CY07 for Sesa Goa and they feel that China's appetite will remain influential in fueling this. Morgan Stanley also expects a 19% contract price increase for CY06 supplies likely in the coming quarters. The upturn in pig iron and coke prices will improve cost and realisations, says the report. On the valuations front, Morgan Stanley expects Sesa Goa's EBITDA to have a CAGR of 19.6% during FY06-09. The report also says that the stock is currently trading at a P/E of 5.4x FY07 earnings and 4.3x FY08 EPS. According to thee report, at a price target of Rs 1478, the stock would trade at 6.3x FY08 EPS. -- DEV BOREM KORUM. Gabe Menezes. London, England _______________________________________________ Goanet mailing list [email protected] http://lists.goanet.org/listinfo.cgi/goanet-goanet.org
