Double upgrade on dollar revival boosts EADS shares

LONDON (MarketWatch) — Natixis raised its rating on European aerospace and defense company EADS to buy from sell, saying the stronger dollar has a “very beneficial” impact on the company’s resilience capacity. The broker told clients it has raised its earnings per share estimates by 7.6% for 2009 and 63% for 2010. It said that although the sector backdrop certainly isn’t improving, it doesn’t see the current share price fully reflecting the beneficial effects of the dollar’s revival: higher profitability and net cash, enhanced competitiveness and improved capacity to ensure client financing if necessary. “All considered, for EADS valuation, the dollar is more decisive than the economy,” the broker concluded. EADS shares rose 5.2% in early-afternoon trading in Paris.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Original post by Forextvblog

This entry was posted on Tuesday, September 9th, 2008 at 5:12 am and is filed under Daily Forex Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.