Broker snap: UBS slashes numbers at Antofagasta

25th Aug 2011 12:54

UBS has cut its target price for Antofagasta by 110p after the South America-focused copper (Cu) miner's first half earnings came in below forecasts.The company announced on Tuesday that earnings per share (EPS) for the six months to 30 June came in 4% lower than consensus estimates and 11% under UBS's forecasts.Nevertheless, the firm "remains confident that copper fundamentals will remain supportive of a strong pricing environment" albeit volatile near-term, the broker notes."We are attracted by ANTO's low cost position/ strong management, but remain cautious on Cu prices near-term [...] We expect ANTO to focus more on growth medium-term, increasing risk of sustainability of special dividend."However, UBS has slashed its EPS targets for the full year by 18%, and by 21% in 2012, reflecting expensing of the Esperanza interest, exploration and other costs.A neutral rating was kept.Shares were 1% higher at 1,215p by 12:54 on Thursday, helped by rising copper prices.BC