Klöckner "buy," target price raised

06.07.07 - Deutsche Bank

LONDON, July 6 (newratings.com) - Analyst M Pfeifenberger of Deutsche Bank maintains his "buy" rating on Klöckner & Co AG (KCO). The target price has been raised from ?57 to ?64.

In a research note published this morning, the analyst mentions that the company has made eight acquisitions so far this year, most of them being small/mid-sized warehouses. Klöckner is likely to make even more and potentially larger takeovers, with four deals still left for the year to achieve the official target, the analyst says. The company?s margins are likely to expand by 150-200bps by 2009, driven by the internal efficiency enhancement programme, Deutsche Bank adds.