AbitibiBowater Citi''s 2008 Top Picks ListNot sure if this is old news on this board but these guys have them at $60 back in January. Here is the article.
Barrick Gold Corp. (ABX)and AbitibiBowater Inc. (ABH) represent the lone Canadian companies to make the list of Citi Investment Research's top picks for 2008.
The list, which includes 58 companies in total, represents the best money-making investment ideas for the upcoming year as chosen by Citi's U.S.-based security analysts.
Barrick was analyst John Hill's number one pick in the mining & precious metals sector. He has a $48 price target for the shares.
Citing the slowing U.S. economy and the likelihood that demand for industrial metals will remain soft this year, Mr. Hill told clients in a note that gold will continue to test record highs throughout 2008 and Barrick, which the analyst said operates the most profitable network of gold mines in the world, will surely stand to benefit.
"We believe gold will test $850 to $1,000 per ounce, setting up a favourable dynamic for the world's No. 1 miner Barrick Gold."
Paper & Forest products analyst Chip Dillon, meanwhile, flagged AbitibiBowater as his top small cap pick. His $60 price target represents a whopping premium not only on the current share price but also on the $28 consensus target estimates from the Street.
"Consolidation of Abitibi Consolidated and Bowater allowed shuttering of excess capacity and should allow the price spread between Europe and North America to close," Mr. Dillon wrote, adding with newsprint prices set to rise, the cycle is turning in AbitibiBowater's favor.