Kloeckner "buy," target price raised

01.11.06 - Deutsche Bank

LONDON, November 1 (newratings.com) - Analyst Matthias Pfeifenberger of Deutsche Bank reiterates his "buy" rating on Kloeckner & Co (KCO). The target price has been raised from ?24 to ?33.

In a research note published this morning, the analyst mentions that the company plans to make ten-to-twelve acquisitions in FY07. The revenue growth estimates for 2006 and 2007 have been raised from 10% to 11% and from 5% to 8%, respectively, while the margin expansion estimates for 2007-2009 has been raised to 40bps per annum to reflect significant M&A and efficiently benefits. The EPS estimates for FY06, FY07 and FY08 have been raised by 10%, 20% and 20%, respectively.