Kloeckner "buy," target price raised

30.08.06 - Deutsche Bank

LONDON, August 30 (newratings.com) - Analyst Pascal Spano of Deutsche Bank maintains his "buy" rating on Kloeckner & Co AG (KCO), while raising his estimates for the company. The target price has been raised from ?22 to ?24.

In a research note published this morning, the analyst mentions that the company has posted robust 1H06 results, with EBITDA rising 83% y/y. Kloeckner's underlying profitability for the period was ahead of the estimates, with ?25 million of the EBITDA contributed by windfall profits, the analyst adds. The EPS estimate for FY06 has been raised by 22%.