Boart Longyear (BLY) Results

Submitted by Share Trading on 10 April, 2008 - 11:40

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

BLY: Who Boart Longyear in a Goodyear?

Boart Longyear (BLY)’s competitor Layne Christensen reported a better than expected 4Q result last night, which saw the stock rally 22%. The result highlights strong current trading conditions for BLY, which is expected to be confirmed at the company’s upcoming AGM on 28 April. Following Layne Christensen’s strong rally overnight, shares in BLY have today rallied 4%. BLY, a resource supply agent, is well positioned to benefit from ongoing resource demand and MRE rates the stock as an “Outperform”, ahead of their AGM.

Boart Longyear (BLY) Recent Event

BLY’s competitor Layne Christensen reported a better than expected 4Q result which saw the stock rally 22%. The firm attributed its strong performance to the success of their mineral exploration division. In addition to this Layne’s drilling services business is a customer of BLY products.

MRE highlight that the result shows the strong current trading conditions for BLY, and expect this to be confirmed at the firms’ upcoming AGM on 28 April. MRE also feel that their 12-15% growth guidance is conservative and foresee further upside as the year progresses. Trade feedback points to continued strong exploration demand in 2008. The need to replace depleting reserves remains an important driver of exploration demand.

Boart Longyear (BLY) Action & Recommendation

MRE retain their Outperform recommendation on the BLY with a 12 month price target of $2.47. Finally, in terms of FY08 PER, MRE also feel the firm is trading on a considerable discount at 12.8x in contrast to Layne’s 16.6x FY08.