Turquoise Hill Resources Ltd (NYSE:TRQ) facing the blues

Posted by Lynn Eisler August 5, 2013 0 Comment 1491 views


In a report that was released on Wednesday, Credit Suisse reduced the price target for Turquoise Hill Resources Ltd (NYSE:TRQ) from $10.00 to $6.00 and the current rating on the stock is “neutral”. Numerous other analysts have commented on the TRQ stock lately CSFB analysts downgraded the company shares from an “outperform” to a “neutral” rating. They have now set the price target of the stock at C$6.00. Previously it stood at C$10.00.

More analyst projections

CIBC analysts downgraded the company’s shares from an “outperform” to an “underperform” rating. And have now set a target price of C$5.50 which is down from the earlier C$9.50. BMO capital market analysts also downgraded Turquoise Hill shares from an “outperform” to a “market perform” rating and have now set a price target of C$5.50 which is down from the C$10.00 that it stood at earlier. Two investment analysts have set a “sell” rating on the stock while 3 have assigned a “hold” rating. The average analyst price rating is “hold” and the average target price is C$6.25.

There as news on 2 July that Turquoise Hill Resources Ltd (NYSE:TRQ)’s controlling-shareholder, Rio Tinto does not require Mongolian parliamentary-approval for a $4B financing package. This package was meant to fund the Oyu Tolgoi underground mine which is a copper project.

The effect

Post this news, TRQ’s stock rose 10.2% to touch $5.03. Rio Tinto’s TRQ unit owns 66% of Oyu Tolgoi while the Mongolian government owns 34%. At the start of last week, TRQ stock had dropped by around 30% after Rio Tinto Plc said that it had been told that the project-financing that had been provisionally secured for this project, will need the approval of the parliament.

In Friday’s trading session, Turquoise Hill Resources Ltd (NYSE:TRQ)’s stock rose by 7.62%. The opening price of the shares was $4.63 which reached an intraday high of $5.23 and closed at $4.80. Around 18.49M shares exchanged hand in the last trading session while the average-volume of shares that were traded over a 30-days period were 4.06M.


About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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