Oct. 9 (Bloomberg) -- New World Resources Plc fell to its lowest level in about three years after JPMorgan Chase & Co. cut the stock recommendation to “underperform” from “neutral” citing “weakness” in coking coal markets.
The stock slid 0.27 koruna, or 0.3 percent, to 85.7 koruna in Prague trading. That’s the lowest level since July 2009.
JPMorgan expects NWR to “underperform due to a lack of growth and weakness in coking coal markets, while the balance sheet leverage continues to increase,” JPMorgan analysts wrote in a research note dated today.
JPMorgan also lowered its price estimate for the shares to 260 pence from 530 pence.
The bank expects small and mid-size miners to continue to underperform large diversified names and recommends investors to favor “quality” over leverage, the note said.
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