Klöckner "buy," target price raised

04.06.08 - UniCredit Markets & Investment Banking

LONDON, June 4 (newratings.com) - Analyst Christian Obst of UniCredit Markets & Investment Banking maintains his "buy" rating on Klöckner & Co AG (KCO), while raising his estimates for the company. The target price has been raised from ?46 to ?48.

In a research note published this morning, the analyst mentions that the acceleration of prices in the past three months is expected to positively impact the company?s performance in 2Q and 3Q. Klöckner has indicated that its 2Q08 prospects are bright. The integration of Temtco Steel and the rising steel prices are likely to bolster the company?s performance for the quarter, the analyst says. The EBITDA estimate for 2008 has been raised from ?420 million ?485 million. The EPS estimates for 2008 and 2009 have been raised from ?4.25 to ?5.26 and from ?4.25 to ?4.63, respectively.