UBS raises target share price for Swiss EMS on strong H1 results

15 July 2013 11:21  [Source: ICIS news]

Swiss EMS Group production siteLONDON (ICIS)--UBS has raised its target share price for EMS Group after the Switzerland-based producer reported strong first-half net operating income, the investment bank said on Monday.

Last week, EMS reported that its first-half net operating income rose 9.3% year on year to Swiss franc (Swfr) 183m (€148m, $193m), boosted by the performance of its High Performance Polymers business. Consolidated net sales during the period amounted to Swfr 954m, 5.5% higher than for the same period of the previou0s year.

UBS raised EMS’s 12-month share price target to Swfr 288.00 from Swfr 263.00. The investment bank held EMS’s share rating unchanged at “neutral”.

“Following better than expected H1 [first-half] numbers, we raise our 2013/14 forecasts," UBS said.

“Most important for valuation and our PT [price target], we raise our projected equity free cash to Swfr 258m from Swfr 236m. Our PT rises commensurately, to Swfr 288 from Swfr 263,” it added.

Overall for 2013, EMS said last week it continues to expect net sales and net operating income slightly above those of the previous year.

“EMS will continue consistently to exploit globally existing market potential. The successful strategy of concentration on specialty products in the area of High Performance Polymers will be pushed forward.

"Market positions will be strengthened and, in particular, growth markets outside western Europe expanded,” it added.

At 10:19 GMT, EMS’s shares were trading at Swfr 312.25 on the Swiss SIX Stock Exchange, up 0.16% on the previous close.

(€1 = Swfr 1.24, $1 = Swfr 0.95)

By: Franco Capaldo
+44 (0)20 8652 3214

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