STRABAG initiated with "hold"

05.12.07 - Deutsche Bank

LONDON, December 5 (newratings.com) - Analysts at Deutsche Bank initiate coverage of STRABAG SE (XD4) with a "hold" rating. The target price is set to ?50.

In a research note published this morning, the analysts mention that the company is expanding its operations in Eastern Europe and Russia. The order backlog at STRABAG?s Russian operations has risen substantially in 3Q07 and the company?s competitive positioning has improved for five mega-projects in Russia due to the purchase of a 30% stake in the company by a Russian oligarch, Mr Deripaska, the analysts say. The company holds leading positions in six countries and is likely to post sales CAGR of 10% during 2006-2009, Deutsche Bank adds.