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01878 SOUTHGOBI
RTNominal down3.080 -0.060 (-1.911%)
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25/05/2011 17:58

[I-bank focus] CLSA upgrades SouthGobi (01878) to "buy"

CLSA upgraded SouthGobi (01878) from "outperform" to
"buy" following its recent 30% correction, and revised its target price to HK$115 from
HK$125.
The research house believes concerns over fuel shortages in Mongolia and soft sales
volumes in 2Q will prove short-lived. An ongoing buyback will provide some share price
support, while progress on the Soumber development in 2H11 should unlock value. (KL)

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