Analyst R Profiti of Credit Suisse maintains his “neutral” rating on Fording Canadian Coal Trust (FDG.UN.TOR), while raising his estimates for the company. The 12-month target price has been raised from C$23 to C$34.

In a research note published this morning, the analyst mentions that the benchmark hard-coking coal price estimates for FY07 and FY08 have been raised from $88/t to $115/t and from $75/t to $110/t, respectively. Fording Canadian Coal Trust’s currency hedge programme helps the company to manage its exposure to currency fluctuations, the analyst says. The company’s distributable income per share gets impacted by C$0.13 for every $0.01 change in the US$/C$ exchange rate, Credit Suisse adds. The EPS estimate for FY08 has been raised from $2.56 to $2.85.

Find More Mining News :