NewsKlöckner "overweight," target price raised
16.05.08 - J.P. Morgan Securities
LONDON, May 16 (newratings.com) - Analyst Jeffrey Largey of JP Morgan reiterates his "overweight" rating on Klöckner & Co (KCO), while raising his estimates for the company. The target price has been raised from ?42 to ?47.
In a research note published this morning, the analyst mentions that the company's stock continues to provide the best opportunity to gain exposure to the rising steel prices through European equities. Unlike other steelmakers, Klöckner is not witnessing raw material cost pressures, the analyst says. The steel price prospects are improving in North America as well as Europe, which are expected to help extend the windfall profits situation through 3Q and probably into 4Q, JP Morgan adds. The EPS estimates for 2008 and 2009 have been raised from ?4.50 to ?4.92 and from ?4.65 to ?5.25, respectively.