Klöckner "overweight," target price raised

08.12.06 - J.P. Morgan Securities

LONDON, December 8 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on Klöckner & Co (KCO), while raising their estimates for the company. The target price has been raised from ?31 to ?32.

In a research note published this morning, the analysts mention that the company?s 3Q06 results exhibited additional EBITDA margin expansion. The analysts expect inventory turnover at Klöckner to improve during 4Q06. The company is likely to announce its first dividend during 2007, JP Morgan adds. The EPS estimate for FY06 has been raised by 14% to ?4.70.