Klockner upgraded to "overweight"

11.02.08 - J.P. Morgan Securities

LONDON, February 11 (newratings.com) - Analysts at JP Morgan upgrade Klockner & Co (KCO) from "neutral" to "overweight," while raising their estimates for the company. The 6-month target price is set to ?36.

In a research note published this morning, the analysts mention that rising steel prices are expected to drive robust earnings and windfall profits in the near future. The analysts believe that Klockner?s profitability would improve significantly in 1H08. The company?s growth is expected to be driven by acquisitions and cost savings going forward, JP Morgan says. The EPS estimate for 2008 has been raised from ?3.04 to ?3.52.