Inco's 2007 profit forecast raised

Publicly listed PT International Nickel Indonesia (Inco), the country?s largest producer of the metal, had its 2007 net income forecast raised by PT CLSA Indonesia because of higher nickel price estimates.

The miner may earn US$271 million in 2007, 5 percent higher than the brokerage?s previous estimate, analyst James Gruber said in a report Tuesday. Nickel may fetch $7.40 a pound in 2007, compared with an earlier forecast of $6.75, he said.

The price of nickel, used to produce stainless steel, has surged 91 percent this year and touched a record $26,900 a ton on July 17 in London,The Jakarta Post reported Wednesday.

CLSA raised its 12-month target for the stock to Rp 18,000, from Rp 14,750, and rated the shares a ?sell? because of rising costs and production constraints the miner will likely face until 2009. (*)