EXXARO RE­SOURCES

Finweek English Edition - - INVESTMENT -

BUY SBG Se­cu­ri­ties has down­graded its 12-month price tar­get on the group from R190/share to R185. This fol­lows the re­lease of third quar­ter re­sults from sub­sidiary in­vest­ment Tronox. SBG told clients: “On a com­par­a­tive ba­sis, Exxaro ap­pears rel­a­tively at­trac­tive based on our es­ti­mates, with an FY13 P/E of 9.7x com­pared to 13.8 for African Rain­bow Min­er­als, 16.3x for Kumba Iron Ore and 13.1x for Assore, and of­fers the high­est to­tal re­turn (17%) amongst the SA di­ver­si­fied min­ers. How­ever, we cau­tion that we still don’t ex­pect any pos­i­tive cat­a­lysts in the near term, which could drive sen­ti­ment, and hence re-iter­ate our HOLD rec­om­men­da­tion on the stock.”

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