Tecnicas Climbs on Kepler Rating, Expansion Report: Madrid Mover
Tecnicas Reunidas SA (TRE) was the second- biggest climber on Spain’s benchmark IBEX 35 Index today after Kepler changed its recommendation on the stock to “buy” from “hold,” and Expansion reported that the Spanish engineering company may bid for U.K. contracts.
Tecnicas rose 1.6 percent to 30.03 euros, giving the company a market value of 1.68 billion euros ($2.21 billion). The IBEX 35 declined 0.3 percent.
Tecnicas may join with Ferrovial SA (FER) to bid for contracts to build nuclear plants in the U.K. in the next few years, newspaper Expansion reported today. Kepler Capital Markets today raised its target for the stock to 33.5 euros from 29.3 euros, citing higher-than-expected order intake in 2011 and better 2012 prospects.
“After a very difficult 2011, with strong competition from Koreans in the Middle East and delays in contracts in other areas, we believe that Tecnicas is well ahead in its ‘transition period,’” Natalia Bobo, a Madrid-based analyst at Kepler, wrote in a report sent to investors.
Tecnicas dropped 42 percent last year, making it the fourth-worst performer in the IBEX 35. The company has won several construction contracts in the past few months, and has advanced 8.1 percent this year.
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