Merrill Lynch said it has raised its intermediate-term rating on glassmaker Pilkington Plc to “buy” from “accumulate” and repeated a long-term “buy” rating on the stock.
In a research note, analysts …
Merrill Lynch said it has raised its intermediate-term rating on glassmaker Pilkington Plc to “buy” from “accumulate” and repeated a long-term “buy” rating on the stock. In a research note, analysts at the investment bank said they cut their 12-month price target on Pilkington to 95 pence from 100p, but regarded the stock as the strongest recovery play in the sector. “The rating change is price driven,” the note said. “A 50% outperformance last June-Sept 1999 has since totally reversed, reflecting “old economy” stock sentiment. “Management is now, we believe, the strongest ever at Pilkington and an improvement in European glass markets generally is an added bonus,” the note said. Merrill analysts said few stocks could match Pilkington“s recovery prospects allied to low valuation.