Citigroup upgrades Adelaide Brighton to Buy

Citigroup upgrades Adelaide Brighton to Buy
Published: 06 April 2010

Citi lifts Adelaide Brighton’s rating to Buy from Hold and raises its target to A$3.10 from A$2.58 vs latest A$2.66, up 8 cents.

Citi sees a turnaround in cement markets saying volumes likely  bottomed in 2Q09 and should increase five per cent in FY11. However, it doesn’t believe the arrival of Thailand’s Chememan company in Australia’s lime market will be a financial threat.

The financing group also said there could be an upside from a stronger-than-expected domestic economic recovery but says there could be a downside from the lack of clarity on proposed government carbon pollution reduction schemes.

Source: Dow Jones Newswires