Metals and Mining
October 06, 2011
We are revising our target prices for companies in our M&M universe to reflect expected stagnation in output over 4Q11 and 2012, weakness in prices for steel and steel inputs, and higher perceived risk. Our top picks remain Pivnichny GOK and Centralny GOK, which are dividend plays with the respective dividend yields expected at 23% and 26%; the payouts should be declared in the coming spring. We upgrade Ferrexpo to a BUY with a TP of USD 5.71 per share. We maintain SELL ratings for Azovstal and Alchevsk Coke.
