0414 GMT - The market underappreciates Champion Iron's premium-grade products, and the potential for improved premiums as its direct reduction pellet feed facility ramps up, UBS says. The bank initiates coverage of the stock with a buy rating and target price of 4.15 Australian dollars. "For CIA, we see grade rather than outright iron ore price as the key differentiator," it says. "Growing demand for premium steelmaking inputs, declining seaborne ore quality, and increasing blending requirements support structurally attractive economics for ultra high-grade iron ore producers." Shares are up 0.7% at A$3.08.
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