Atlas Copco downgraded to "hold"

04/28/09 - Deutsche Bank

LONDON, April 28 (newratings.com) - Analysts at Deutsche Bank downgrade Atlas Copco (ACOA) from "buy" to "hold." The target price has been raised from SEK70 to SEK75.

In a research note published this morning, the analysts mention that the company’s share price has appreciated significantly in recent times, in anticipation of a swift recovery in the earnings. Atlas Copco has reported its 1Q earnings ahead of the forecasts, although its orders were marginally short of the estimates. The company’s earnings are expected to improve gradually, largely due to cost savings, Deutsche Bank says. The EPS estimates for 2009 and 2010 have been raised by 3% each.