Suez "reduce"

01/06/04 - Dresdner Kleinwort Wasser.

LONDON, January 6 (New Ratings) – Analysts at Dresdner Kleinwort Wasserstein maintain their "reduce" rating on Suez (LYOE.PA). The target price is set to €14.

Shares of Suez, a global industrial group, offering energy and environmental solutions, are currently trading at €16.13.

According to Dresdner Kleinwort Wasserstein's research note published this morning, Suez announced that it would post the results of its cost trimming programme, Optimax, on March 4, 2004. The company was expected to provide the details of Optimax during early January 2004, the analysts say. The analysts believe that investors would be disappointed by the company's delayed report.

According to the analysts, the company intends to offer more details on its cost cutting programme during March 2004. However, the incremental cost savings during 2004 are likely to be insignificant, the analysts believe. The analysts express their concern regarding the company's ongoing cost cutting programme and unsustainable dividend payout ratio.

Dresdner Kleinwort Wasserstein maintains its “reduce” rating on Suez.