Kloeckner initiated with "buy"

18.08.06 - Deutsche Bank

LONDON, August 18 (newratings.com) - Analyst Pascal Spano of Deutsche Bank initiates coverage of Kloeckner & Co (KCO) with a "buy" rating. The target price is set to ?22.

In a research note published this morning, the analyst mentions that the new management's aggressive efficiency programme and asset rationalisation are expected to drive cash generation and margins going forward. Kloeckner's EBITDA margins are expected to rise from 4.0% during FY2005 to 5.9% during FY2008, the analyst adds.