Deutsche upgrades Trelleborg price target

30 October 2009 - Deutsche Bank has raised the share price target on Swedish engineering group Trelleborg AB (STO: TREL B) to SEK45 from SEK40, while reiterating its "hold" recommendation, after the group released third-quarter figures yesterday.

Trelleborg saw its net profit more than double to SEK216m in the third quarter of 2009 from SEK102m a year earlier.

"With a 35%-40% exposure to the vehicle sector, Trelleborg will benefit from increasing car production, which is now taking place in the short term," Deutsche Bank said in an analysis.

However, the bank also noted that Trelleborg has a limited exposure to growth markets and its outlook in the mid-term seems worse compared to the outlook of many of its rivals, according to Deutsche Bank.

Trelleborg's results for the third quarter of 2009 were better than expected, chiefly due to successful cost-savings, the bank wrote, describing even the cash flow as solid.

The B-series share in Trelleborg closed at SEK44, up 2.56% on Friday, on the OMX Nordic Exchange in Stockholm.

(EUR1 = SEK10.4)

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