BROKERWATCH Kazakhmys cut to 'sell' vs 'underperform' by Seymour Pierce UPDATE

LONDON, Mar 04, 2008 (Thomson Financial via COMTEX) -- KZMYF | news | PowerRating | PR Charts -- Seymour Pierce downgraded Kazakhmys PLC, the largest copper producer in Kazakhstan, to 'sell' from 'underperform' as the broker expects copper prices to decline.

"While expectations of a US slowdown are aiding the copper price by weakening the dollar, we believe the metal's price will fall when the downturn hits," the broker said in a research note.

Despite upgrading its target price for the stock to 1,380 pence from 1,050 pence on the back of the group's share buyback, a rise in the share price of Eurasian Natural Resources Corporation PLC, and the Ekibastuz acquisition, it nonetheless has advised investors to 'sell'.

The downgrade comes ahead of the full-year results for Kazakhmys on Thursday. The FTSE-100 miner is expected to post steady earnings amid ongoing production problems, the relative strength of the Tenge and the relatively high rate of domestic inflation in Kazakhstan, the broker said. hannah.benjamin@thomson.com hmb/sal/jc/kf1

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