05 February 2007 15:18 [Source: ICIS news]
(Updates and adds share prices)
LONDON (ICIS news)--UBS on Monday upgraded Johnson Matthey’s rating due to strong growth prospects in its autocatalysts business.?xml:namespace>
Johnson Matthey’s rating was increased to ‘Buy’ from ‘Neutral’, while UBS raised the price target to 1,800p ($35/€27) from 1,490p.
The UK group's earnings growth was expected to accelerate in the next five years at a time when earnings for most companies in the sector were decelerating or declining, said the analyst report.
It was thought to be underperforming the ?xml:namespace>
UBS expects a significant part of Johnson Matthey’s growth to come from autocatalysts, with new environmental legislation giving the market a higher degree of visibility.
The product was expected to see 12% growth in trading profits in the next five years.
UBS sees pharmaceuticals as another strong performer, where Satraplatin could enhance profit growth from 7% to 14% per year over the next five years.
Johnson Matthey shares soared nearly 6% on the London Stock Exchange from Friday’s close, reaching a 1,593p high.
(£1 = €2/£1 = €1.5)
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