Norddeustsche Affinerie upgraded to "buy"

09.06.08 - Deutsche Bank

LONDON, June 9 (newratings.com) - Analyst Benjamin Kohnke of Deutsche Bank upgrades Norddeustsche Affinerie AG (NDA) from "hold" to "buy," while revising his estimates for the company. The target price has been raised from ?22.50 to ?40.

In a research note published this morning, the analyst mentions that the company has posted robust 2Q and 1H results. The acquisition of Cumerio by Norddeustsche Affinerie marks the first move towards the consolidation of a fragmented global copper producer market, the analyst says. The consensus expectations for the company are very conservative and its bright prospects are underappreciated by the market, Deutsche Bank adds. The company expects to achieve cost synergies of more than ?15-?20 million every year from the Cumerio deal, which is likely to further improve its cost base. The EPS estimate for FY08/09 has been revised to ?4.55.