Broker snap: Avocet remains a top pick for Ambrian

7th Sep 2011 12:42

After factoring in higher gold prices and a recent sale, Ambrian has raised the target price for AIM-listed gold miner Avocet Mining and confirmed a buy rating.The firm announced on Wenesday that it has completed the sale of two more South East Asian assets for $11m, resulting in a pre-tax gain of around $4.5m (to be included in its third quarter results).The broker notes that Avocet has now received $181m of the total $200m disposal progamme of South East Asian assets."Avocet unequivocally remains one of our top picks for gold exposure this year. The company has run from strength to strength this year from a corporate and operational perspective, and we see further potential in its developing asset base," said analyst Duncan Hughes.The target price is raise from 284p to 298p, reflecting the increase to the broker's short-term gold price assumptions (to $1,670/oz, $1,800/oz and $1,600/oz in the next three quarters, respectively).Nevertheless, shares were 0.98% down at 278.5p by 12:42.BC