Boart Longyear (BLY) Update

Submitted by Share Trading on 8 April, 2008 - 14:33

Boart Longyear (BLY) has an Outperform recommendation and a 12 month share price target of $2.47 from Australian stocks analyst Macquarie Research.

Boart Longyear (BLY): Trading Idea

Current Price: $1.86
Target Price: $2.47 (~33% Upside)
P/E: 12.3 X
Div Yield: 2.9% (35% Franked)

Boart Longyear (BLY) Technicals

  • BLY has pulled back ~31% from it’s all time high at $2.75 in October 07 to now be trading at $1.90, just $0.05 above its April 07 listing price.
  • BLY today traded up to its strong support/resistance level at $1.90 and if it can maintain its strong uptrend looks like it could be ready for an upside break-out.
  • This technical set-up is supported by strong fundamentals listed below.

Macquarie Research Equities (MRE) Fundamental View of Boart Longyear (BLY)

1. Trade feedback points to continued strong exploration demand in 2008. The need to replace depleting reserves remains an important driver of exploration demand.
2. BLY revenue guidance for FY08 looks conservative in MRE’s view volume growth along with the pricing outlook for both Services and Products divisions looking strong.
3. MRE forecasts 21% FY08 EPS growth.
4. Catalyst: AGM on 28 April 08.