ubs keeps buy rating

I think the company profit warning on Friday, which follows a widespread re-rating of engineering/mining service stocks, was already built into the market price of BOL. So I think the sell-off was probably a kneejerk reaction and may have been overdone.

Not sure whether BOL will drop much further, it seems to be holding, so far (fingers crossed), at 0.28. It looks like UBS have kept their Buy rating on the stock (see below). In the longer term I think there is still a lot of value in BOL.

Good luck to BOL holders.



http://finance.ninemsn.com.au/newscolumnists/brokercall/8604366/fn-arena-broker-call-headlines-4-feb-2013

- BOOM LOGISTICS LIMITED

UBS rates as Buy (1) - UBS has made significant revisions to estimates to reflect the new operating environment for mining service companies. FY13-15 EPS estimates have been revised down by 30%,20% and 16% respectively.

Nevertheless, the broker still expects Boom to deliver solid growth. The price target is reduced to 40c from 55c, but the Buy rating is retained.


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