PT Incos 2007 Profit Forecast Raised at CLSA on Nickel Pricesadmin
Wednesday, August 9th 2006
PT International Nickel Indonesia, the country’s largest producer of the metal, had its 2007 net income forecast raised by PT CLSA Indonesia because of higher nickel price estimate.
The miner may earn $271 million in 2007, 5 percent higher than the brokerage’s previous estimate, analyst James Gruber said in a report today. Nickel may fetch $7.4 a pound in 2007, compared with an earlier forecast of $6.75, he said.
The price of nickel, used to produce stainless steel, has surged 91 percent this year and touched a record $26,900 a ton on July 17 in London.
CLSA raised its 12-month target for the stock to 18,000 rupiah, from 14,750 rupiah, the brokerage rated the shares a “sell” because of rising costs and production constraints the miner will likely face until 2009.