KGHM Advances as Erste Advises Accumulate Polish Copper Miner
The shares rose as much as 1.1 percent and traded 0.8 percent up at 194.1 zloty as of 11:08 a.m. in Warsaw, the highest since July 2011, valuing the Lubin, Poland-based company at 38.8 billion zloty ($12.7 billion). Erste set its target price at 210 zloty per share.
KGHM completed Poland’s biggest foreign purchase by buying Canada’s Quadra FNX Mining Ltd for $2.9 billion in cash in March. In October, the company increased its 2012 profit forecast 25 percent to 4.74 billion zloty.
“KGHM became a multinational company, which, in our opinion, deserves a fair comparison versus its closest international peers,” Michal Zasadzki, a Warsaw-based analyst at Erste, said in a note to investors. “KGHM is traded with a 14 percent discount” to peers, he said.
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