Rheinmetall "buy," target price raised

04.05.07 - Deutsche Bank

LONDON, May 4 (newratings.com) - Analyst Bastian Synagowitz of Deutsche Bank maintains his "buy" rating on Rheinmetall AG (RHM), while raising his estimates for the company. The target price has been raised from ?73 to ?82.

In a research note published this morning, the analyst mentions that the company?s Air Defence business appears to be recovering at a faster-than-expected pace, given the recent significant order intakes of approximately ?100 million. The 2008 tax rate estimate has been reduced from 30% to 26.5% to reflect the German Corporate Tax Reform, the analyst says. The EPS estimate for 2008 has been raised by more than 5% to ?5.41.