Deutsche Bank puts 'sell' on Nalco
Deutsche Bank has downgraded its rating on aluminium major Nalco to ‘sell’ as the company lacks fundamental support at this stage.
Nalco
cmp: Rs 182.9
target price: Rs 126
Deutsche Bank has downgraded its rating on aluminium major Nalco to ���sell��� as the company lacks fundamental support at this stage. ���Our global commodities team has made sharp downward revisions to our industrial metals price forecasts.
Price forecasts for aluminium have been reduced by 26% for 2009 and 32% for 2010 to $1382/t and 1538/t, respectively. Following the revisions, we are cutting Nalco���s EPS by 23% and 34%, respectively, for FY09 and FY10. We downgrade the stock to sell with a revised target price of Rs 126,��� the German bank���s report said.
���With continuing headwinds in both alumina (26% of revenues) and aluminium (70% of revenues) businesses, we see no fundamental support for the stock, until the outlook for both businesses improves,��� the report added.
cmp: Rs 182.9
target price: Rs 126
Deutsche Bank has downgraded its rating on aluminium major Nalco to ���sell��� as the company lacks fundamental support at this stage. ���Our global commodities team has made sharp downward revisions to our industrial metals price forecasts.
Price forecasts for aluminium have been reduced by 26% for 2009 and 32% for 2010 to $1382/t and 1538/t, respectively. Following the revisions, we are cutting Nalco���s EPS by 23% and 34%, respectively, for FY09 and FY10. We downgrade the stock to sell with a revised target price of Rs 126,��� the German bank���s report said.
���With continuing headwinds in both alumina (26% of revenues) and aluminium (70% of revenues) businesses, we see no fundamental support for the stock, until the outlook for both businesses improves,��� the report added.
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