Ceramic Fuel Cells Share News (CFU)

Kazakhstan based mining group Eurasian Natural Resources is sitting pretty in the mining sector, Merrill Lynch reckons, as it will benefit from higher metals prices without suffering the same level of cost increases set to afflict its South African rivals.'We believe costs for South African producers will see structural increases over the next few years as power tariffs should see steep rises. This in turn supports higher prices, as South African producers are key players in setting benchmark prices,' the broker reasons, adding that this scenario creates 'a compelling buy case for ENRC.'The broker notes that ENRC 'produces its own captive power at a fraction of the cost its competitors pay for electricity, and therefore enjoys an un-paralleled position on the cost curve.'Following a tough Christmas in the depths of the downturn in 2008, UBS thinks that Restaurant Group, the owner of the Frankie & Bennie's and Chiquito chains, will have seen better trading over the latest festive period and has upped its rating on the company accordingly.It now has a 'buy' stance on the company, compared with 'neutral' previously and lifts its target price to 218p from 205p.It notes that the company is trading at about 11.9 times 2010 earnings, 7% below the broader sector.The broker sees Restaurant Group lifting its market share in 2010 as other operators struggle to repeat the heavy discounting seen last year, which Restaurant Group avoided.Goldman Sachs has nudged its price target up for Ceramic Fuel Cells after the Aussie alternative energy technology firm announced on December 22 that it had a government grant for its new mass manufacturing facility.The price target has been increased to 12p from 11p on a three-year time frame, but the stock's rating is maintained at 'neutral' by the US bank.'We believe long-term structural drivers exist for the distributed generation market that Ceramic Fuel Cells is targeting. However, the initial take-up of these products by boiler manufacturers and utility companies may be more challenging in the current economic environment,' Goldman Sachs believes.The bank has trimmed its fiscal 2010 sales forecast by 5.9% to A$5.2m, but longer term the picture looks brighter with Goldman Sachs upping its sales forecasts for 2011 and 2012 by 4.3% and 2.9% respectively.