Analyst RecommendationFrom Investor's Digest
Aur Resources Inc.
AUR-TSX,20.28(25.89),416-362-2614,www.aurresources.com
Credit Suise First Boston analyst Ralph Profitti continues to believe that Aur is one of the most reliable copper producers in the industry, and will continue to focus on the return of capital to its share-holders as well as growth through exploration and pre-development projects.
"Based on the relative valuation versus the peer group, and implied holding return to our $23 target price, we maintain our 'neutral' rating," the analyst says.
Taking into account Mr. Profetti's fiscal 2007 production estimate and copper-price forecast, he believes that every 10 percent change in the copper price will affect Aur's earnings per share by about $0.45.
For the fourth quarter of 2006, the company reported diluted earnings of $0.70 per share, below Mr Profitti's forecast of $0.79 a share and consensus of $0.73. Sales of $181 million also fell short of his $186 million estimate.
And thanks to unforeseen supply-demand issues, the analyst has his 2007 and 2008 copper price assumptions to $2.85 and $2.30 per pound, respectively.
He continues to rank Aur "neutral" with a 12-month target of $23 a share.