FoxDavies initiated research coverage on MEO Australia (OTC: MEAOY; ASX:MEO) with a "Buy Rating" and price target of A$0.60. Below is an excerpt from the report.
“Discoveries not priced in: Trading at A$0.19, MEO’s share price reflects their $90mm cash position alone, and not the 5 assets at the appraisal stage or the 11 exploration assets. With a successful appraisal programme adding in excess of A$1.40 to the current fair value and cash accounting for A$0.18, the shares are undervalued. We are initiating with a target price of A$0.60 and a Buy Recommendation.”