OREANDA-NEWS. Zaporozhie Aluminium Plant, the sole Ukrainian producer of primary aluminium, after an optimistic beginning of the year reported worsening its performance because of aluminium prices beginning dropping in 2H2007. Overall, prices will show about 3.5% y/y growth in 2007. According to Millennium Capital analysts, "since ZALK's costs have been rising rapidly, we expect its net income to drop 5% this year. We believe that ZALK's aluminium and other products output will not increase dramatically enough to compensate for its price risks. In the investment plan, UC RUSAL (ZALK's majority owner) has allocated no money for ZALK's development till 2013." "Our valuations imply a 12-month price target of USD 0.378 with a downside of 30.6% to the current mid-price and therefore we recommend to 'Sell' the stock of the company in question," the analysts conclude.