Citigroup upgrades to Buy from Sell, citing pick-up in infrastructure spending, continued progress in key China, Australia markets. Lifts target to $1.15 from $1.10, based on 11.5X P/E vs 11.0X previously. Says engineering work in progress currently at unprecedented levels in Australia, with commencement of several large infrastructure projects expected to drive crane demand back to pre-crisis levels.
In addition, equipment sales show promising signs of recovery on the back of easing credit markets and an improving economic outlook. Says Tat Hong's aim of doubling revenue from China to 15%-20% within 3 years achievable given country's ambitious rail expansion, investment in energy sector.
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