April 12 (Bloomberg) -- New World Resources Plc, the biggest Czech coking-coal producer, gained the most in more than two weeks after Bank of America Corp. recommended buying the stock as the commodity’s rising price may boost earnings.
The shares rose 3.2 percent to 130.5 koruna at the close in Prague, the biggest gain since March 26, and making NWR the best performer in the 14-member PX index. In U.K. trading, NWR added 5.3 percent to 432 pence at 3:35 p.m. in London.
Bank of America analysts led by Jason Fairclough in London upgraded NWR to buy from underperform with a 600 pence price estimate for the London-traded shares in a report to clients today. BHP Billiton Ltd., the world’s largest producer of coking coal, said this month it may miss deliveries from Australia after strikes and flooding in Queensland affected output.
“NWR is a high-cost, financially geared coking-coal producer and, in our view, is an ideal equity to express a bullish directional view on coking coal,” Bank of America analysts said. “The outlook for coking-coal pricing near term is improving, mostly due to supply impacts in Queensland.”
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