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Capstone Mining Down 3%, Just Below 10 Day Moving Average as Credit Suisse Keeps Neutral Rating, $3.50 TP

Capstone Mining (CS.TO) is down more than 3% and just below its 10 day moving average as Credit Suisse reiterated its Neutral rating and $3.50 target price.

"Capstone reported Q2/10 adjusted EPS of $0.05, below our estimate of $0.09, and the consensus estimate of $0.06, with timing of sales the main reason for the miss. Operational results for the quarter and new production guidance were reported back on July 19...and there were no new operational surprises reported in the financial results," Credit Suisse said in a morning note.

"We maintain our target price of C$3.50 per share and Neutral rating. Our target price continues to be based on a 70/30 weighting of 1.0x our NAVPS of $3.10 and 5.0x FY11 EV/EBITDA. Our NAVPS is unchanged at $3.10, and our 2010 EPS estimate has declined to $0.25 from $0.28. Our 2012 EPS estimate has also declined to $0.54 from $0.55.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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