Tognum initiated with "buy"

08/10/07 - Deutsche Bank

LONDON, August 10 (newratings.com) - Analyst Matthias Pfeifenberger of Deutsche Bank initiates coverage of Tognum AG (TGM) with a "buy" rating. The target price is set to €27.

In a research note published this morning, the analyst mentions that the company generates superior profitability and has the highest EBITDA margins in the industry of 14.6%. The main characteristics of Tognum include global diversification and engine application exposure heterogeneity, the analyst says. Tognum’s constantly high vertical integration and steady innovational drive have resulted in an impressive customer base for the company, Deutsche Bank adds.