TomTom "buy," target price raised

11/20/07 - ING Financial Markets

LONDON, November 20 (newratings.com) - Analyst Marcel Achterberg of ING Financial Markets reiterates his "buy" rating on TomTom NV (OEM). The 12-month target price has been raised from €63 to €70.

In a research note published this morning, the analyst mentions that following Garmin’s withdrawal of its bid, there is increased possibility of TomTom acquiring Tele Atlas for €30 per share. This purchase would allow TomTom to speed up its PND product development strategy and consequently improve market share, the analyst says. The deal would also offer robust long-term opportunities for growth in wireless and internet, ING Financial Markets adds.