credit suisse rates ost as outperform

Credit Suisse rates OST as Outperform. The broker notes the company will receive an advance payment of $64m from the Federal Government under the Steel Industry Transformation Plan.

The broker thinks the cash, which should hit within 30 days, will increase FY12 earnings and help improve debt covenants. Outperform call maintained.

Target price is $1.40 Current Price is $0.77 Difference: $0.635
If OST meets the Credit Suisse target it will return approximately 83% (excluding dividends, fees and charges).

The company's fiscal year ends in June. Credit Suisse forecasts a full year FY12 dividend of 6.20 cents and EPS of 12.50 cents. At the last closing share price the estimated dividend yield is 8.10%.