Deutsche Bank Downgrades Yanzhou Coal Mining (YZC) to Sell; Value Concerns in Australian Assets

August 20, 2012 8:07 AM EDT
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Price: $7.34 +1.24%

Rating Summary:
    1 Buy, 4 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Deutsche Bank downgraded Yanzhou Coal Mining (NYSE: YZC) from Hold to Sell. New price target HK$9.8.

Deutsche analyst said, "We have taken a harder look at Yancoal Australia's coal assets/operations and are concerned that Yanzhou Coal’s value will be destroyed by the acquisitions it has made in the past 12 months. Meanwhile, we believe a decent recovery in QHD thermal coal prices is now wishful thinking, given Deutsche Bank’s conservative stance on China’s economic recovery in 2H12 and even 2013."

Separately, Deutsche Bank’s chief China economist, Jun Ma, has just reduced his 3Q/4Q12 GDP forecasts from 7.9%/8.1% to 7.5%/7.7%, respectively, and sees a very weak recovery in 4Q12.

For an analyst ratings summary and ratings history on Yanzhou Coal Mining click here. For more ratings news on Yanzhou Coal Mining click here.

Shares of Yanzhou Coal Mining closed at $15.83 yesterday.

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