general sentiment, page-8

do brokers ever get it right?



Meanwhile David Haddad from Citi, lists WEC as a high-risk buy, with a price target of $4.10 - down from his previous price target of $5.55. Haddad notes that the failed A$486m Cascade coal transaction has flattened the share price because many saw this "as proof that the binderless briquetting technology did not work and traditional coal assets were needed to fill the gap." Despite downgrades to his assumptions, Haddad still rates WEC as a Buy, although he notes that it is "High Risk". "Our NPV of A$8.22 incorporates a slower rampup and higher costs and uses a WACC of 10%," he says. "Our target of A$4.10 is based on a 50% risk-weighting of NPV, which we believe is appropriate given past challenges with the full-scale plant." Despite the challenges, Haddad believes that WEC will offer good returns once it beds down the Tabang plant



http://www.thebull.com.au/articles/a/21999-brokers-bullish-on-white-energy.html