CIMB rates Seven Group (ASX:SVW) as one of the best houses on a bad street in the troubled mining services sector and has maintained its outperform recommendation on the stock. The broker has cut its 12-month target price to $8.60 and slashed its earnings forecasts for FY2013 by 17% ($1.14) following the announced organisation restructure in the WesTrac machinery business. However, SVW remains CIMB's preferred exposure in the mining services space due to its strong competitive position, high exposure to production activity and the fact that it is trading at a 38% discount to its offshore Caterpillar dealer peers.
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