Cazenove upgrades Kemira EPS guidance on better trading

02 November 2009 11:13  [Source: ICIS news]

LONDON (ICIS news)--Kemira’s earnings per share (EPS) guidance has been upgraded by 15% to €0.62 ($0.92) and by 5% to €0.72 for the full years of 2009 and 2010 respectively, investment bank Cazenove said on Monday.

The Finnish chemical company recorded a 14.7% year-on-year increase in its third-quarter net profit to €40.6m ($59.7m) on 28 October, due to lower variable and fixed costs and healthy demand for speciality chemicals.

Kemira's outlook was likely to stabilise once the market begins to focus on the completion of the rights issue planned for December 2009 and the subsequent spin-off of Tikkurila in the New Year, Cazenove said in an analyst note.

However, the investment bank said Kemira’s valuation was on par with the sector and gave the chemical company an 'In-Line' stock recommendation.

Kemira was trading at €10.26 on the Frankfurt stock exchange at 10:10 local time, down 5.70% on the last close.

($1 = €0.68)

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By: Franco Capaldo
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