Klockner "overweight," target price raised

28.03.07 - J.P. Morgan Securities

LONDON, March 28 (newratings.com) - Analyst Anindya Mohinta of JP Morgan maintains his "overweight" rating on Klockner and Co AG (KLK), while raising his estimates for the company. The 12-month target price has been raised from ?35 to ?45.

In a research note dated March 27 and published this morning, the analyst mentions that the company is expected to pay a dividend of ?1.11 per share in June. Klockner and Co is likely to restart realizing cost savings and inventory gains in 1H07, the analyst says. Since the SAP rollout for the company is not complete in Europe or the US, inventory turnover can be improved, JP Morgan adds. The EPS estimate for 2008 has been raised from ?4.8 to ?4.9.