Excel Coal neutral
Tuesday, August 22nd 2006
Analysts at UBS maintain their “neutral” rating on Excel Coal Limited (ticker: EXL). The target price is set to $8.60.
In a research note published yesterday, the analysts mention that the company has posted its NPAT for FY06 at $98.1 million, representing a 56% y/y increase. Excel Coal’s bottom-line performance was, however, in-line with its guidance, the analysts say. The company has guided to FY07 NTAP growth of 22% due to increased production and costs and flat-to-decreased prices. Excel Coal has also expressed its optimism regarding favourable raw material demand trends, driven by the +10% economic growth in China.
