Citigroup raises its rating on Huaneng Power International HNP from Neutral to Buy and raises its price target to $29.60.
Citigroup comments, "We raised Huaneng's FY12-14E net profits by 28-30% and DCF TP by 40% to $29.60 mainly for lower unit fuel costs (-2% YoY in 2012E, from flat) after our
recent visit. It has high coal inventory of 19 days and does not expect a rise in spot coal
prices amid ample supply. Freight rates, representing 15% of coal cost, also fell 18-31% since early Apr. Its 9.9x FY12E PER looks inexpensive. We upgrade Huaneng to Buy."
HNP closed at $24 on Thursday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in