Kruez

Kruez: DnB NOR maintain Buy with TP $0.50, tipping another qtr of strong margins. Grp reported significantly stronger 2Q11 earnings than expected, with rev, EBITDA, EBIT and EPS 51%, 126%, 131% and 141% ahead of estimates, respectively, driven by higher revenue recognition and stronger margins on the existing order book.
Believe the margin performance will persist and have revised estimates accordingly. Remain positive on the outlook for Kreuz, expecting the pace of IRM tenders to pick up in the rest of the year.