MARKET TALK: ERA Cut To Sell; BHP, Rio Better Uranium Plays-RBS

13th Jul 2010 00:23

2322 GMT [Dow Jones] STOCK CALL: Energy Resources of Australia (ERA.AU) moved down to Sell from Hold by RBS analyst Lyndon Fagan, sees "few positive catalysts on the horizon" and prefers diversified miners Rio Tinto (RIO.AU), BHP Billiton (BHP.AU) for uranium exposure; fall in ERA's 2Q uranium production from heavy rain, weaker ore grades means "the earnings result in August could be very weak. As such, we recommend investors to not hold the stock in the lead up to the announcement." Target price cut to A$12.65 from A$14.91 vs last at A$14.05. RBS sees pure-play uranium stocks underperforming until spot metal price rises, so prefers diversified miners. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 13, 2010 19:23 ET (23:23 GMT)