Rational "hold," target price raised

27.03.06 - Commerzbank Corp. & Markets

LONDON, March 27 (newratings.com) - Analysts at Commerzbank Corporates & Markets maintain their "hold" rating on Rational (RAA), while raising their estimates for the company. The target price has been raised from ?132 to ?137.

In a research note published on March 24, the analysts mention that the company has reported its 2005 results ahead of expectations. Although Rational?s cash from operations declined, the quality of the company?s earnings was healthy, the analysts say. Rational?s outlook exhibits optimism, Commerzbank Corporates & Markets adds. The EPS estimates for 2006 and 2007 have been raised by 7%.