Date: Tuesday 16 Sep 2014
LONDON (ShareCast) - UBS has given molten metal flow engineering firm Vesuvius a double upgrade, raising its rating on the stock by two notches from 'sell' to 'buy' and lifting its forecasts above consensus.
The bank said that the positive stance is based on: "1) confidence that self-help can deliver further margin improvement […]; and 2) a more positive outlook for European steel production (not due to stronger consumption, but rather protectionism supporting the industry)."
After revising its earnings per share (EPS) forecasts, it now sits 9% above consensus for 2015 and 13% above for 2016.
UBS has hiked its target price for the shares from 420p to 560p.
The stock was 2.5% higher at 472p by 11:26 on Tuesday.