23 January 2007 16:05 [Source: ICIS news]
LONDON (ICIS news)--Lehman Brothers has upgraded its recommendation for Dutch speciality chemicals producer DSM from 2-Equalweight to 1-Overweight, the global investment bank said on Tuesday.
It increased DSM’s target price to €43 ($56.06) from €38, slightly above the 10% average upgrade in the sector due to the impact of buying back shares at below fair value.
“In our view DSM could surprise positively this year with a milder than expected downturn in caprolactum and potential next step in anti-infectives restructuring,” said analyst Jennifer Barker.
Lehman Brothers expects DSM to increase operating profits by around 4.7% for 2006 to €846m with sales predicted to increase to €8.37bn, 2.1% higher than 2005.
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