Metso "overweight,” target price raised

04/30/07 - J.P. Morgan Securities

LONDON, April 30 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on Metso (MX). The target price has been raised from €46 to €47.

In a research note published this morning, the analysts mention that the company has reported disappointing 1Q margins in Automation and Minerals. Metso’s earnings momentum is expected to accelerate in 2H, once synergies from the Kvaerner acquisition come through and the recently taken internal measures start bearing fruit, the analysts say. The upward revision in the target price reflects a higher cash flow generation, JP Morgan adds.