Jungheinrich "hold," target price reduced

16.06.08 - LB Baden-Württemberg

LONDON, June 16 (newratings.com) - Analyst Stefan Maichl of LB Baden-Württemberg maintains his "hold" rating on Jungheinrich VZ (JUN3), while reducing his estimates for the company. The target price has been reduced from ?24 to ?21.

In a research note published this morning, the analyst mentions that that the company?s medium-term margin potential is limited on account of investment costs affecting net profits and a weak market environment. Jungheinrich?s proposed capacity expansion in East Germany, worth ?4 million in 2009, is expected to exert pressure on the company?s earnings going forward, the analyst says. The EPS estimates for 2009 and 2010 have been reduced from ?2.76 to ?2.68 and from ?2.78 to ?2.68, respectively.