Bank of America Corporation / Merrill Lynch maintains a weaker rating of Citic Resources (1205.HK) than the broader market, with a target price of HK $2.00.
Bank of America Corporation / Merrill Lynch said Citic Resources shares soared more than 7 per cent after it announced an asset swap with Macarthur Coal (MCC.AU). The share price rally could be excessive because the terms of the offer and the deal are still awaiting approval from Macarthur shareholders, Citic Resources board and shareholders, as well as approval from Australia's Foreign Investment Review Board, other regulators and third parties, the agency said.
Citic Resources rose 7.11 per cent to HK $2.26 yesterday.