Date: 5 /7/12
Broker: Peel Hunt
Company: Trading Emissions
Share price: 20p
Target price: 38p (up from 36p)
Recommendation: Buy
Trading Emissions has not raised any additional cash from investment disposals in the past three months but it has received conditional offers for three of its investments. If all the assets are sold at the indicated valuations this underpins the NAV estimate.
Estimated NAV has risen from 74p a share to 76p a share. This includes 25p a share of cash, a portfolio value of 56p a share offset by a carbon liability of 5p a share. Renegotiation has changed the carbon exposure from fixed out of money commitments to a share of proceeds contract.
A loss of £75m is forecast for the year to June 2012.
The broker has increased its target price from 36p a share to 38p a share, which is 50% of the NAV estimate.
