Citel "hold," estimates raised

12/18/07 - Panmure Gordon & Co

LONDON, December 18 (newratings.com) - Analyst Nick James of Panmure Gordon maintains his "hold" rating on Citel Plc (Q9B), while raising his estimates for the company. The target price is set to 40p.

In a research note published this morning, the analyst mentions that the company has posted its interim results in-line with the expectations. Citel is benefiting in 2H from its cost reduction initiatives and a significant reduction in the company’s opex is likely in the six-month period, the analyst adds. Uptake momentum for Portico TVA has continued in 2H, Panmure Gordon says. The EPS estimates for FY08 and FY10 have been raised from -$9.74 to -$9.69 and from $1.86 to $1.89, respectively.