Jungheinrich "buy," target price reduced

17.04.08 - LB Baden-Württemberg

LONDON, April 17 (newratings.com) - Analyst Stefan Maichl of Landesbank Baden-Württemberg maintains his "buy" rating on Jungheinrich AG (JUN3), while reducing his estimates for the company. The target price has been reduced from ?30 to ?26.

In a research note published yesterday, the analyst mentions that the company delivered a rise in order intake and sales growth in the first two months of the current year. The analyst adds, however, that Jungheinrich?s EBIT margins are likely to contract from 7.0% to 6.9% in the year due to a potential rise in steel prices, the analyst says. The EPS estimates for 2008 and 2009 have been reduced from ?2.86 to ?2.66 and from ?3.05 to ?2.94, respectively.