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HSBC cuts Chalco to underweight |
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Written by Administrator
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Friday, 06 July 2007 |
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HONGKONG, July 5 (InfoChina) – Investment bank HSBC has downgraded Aluminum Corp of China (Chalco, ACH.NYSE, 2600.HK, 601600.SH) from Neutral to Underweight in its latest research report, in spite of an adjusted upward target price of 12.5 Hong Kong dollars per share.
HSBC says Chalco's PE is higher than foreign rival Alcan and international aluminum prices are likely to weaken. Further asset injections remain catalyst, but the factor has been priced into Chalco shares. Merger offer for Baotou Aluminum continues to be Chalco's drive for vertical integration, the bank says. (InfoChina) |
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