Analysts at Austria“s Creditanstalt Investment Bank (CAIB) have rated shares in Radex Heraklith as a “speculative buy” due to the difficulty in assessing future developments on the market for refract…
Analysts at Austria“s Creditanstalt Investment Bank (CAIB) have rated shares in Radex Heraklith as a “speculative buy” due to the difficulty in assessing future developments on the market for refractory products, which contribute 80% of the group“s turnover. According to the bank, Radex will virtually double its profits during the period 1995 to 1998. Earnings per share are forecast to rise from Sch 31 in 1995 to Sch 35 in 1996, Sch 41 in 1997 and Sch 52 in 1998. This would reduce the stock“s price/earnings ratio to 5.8x in 1998, compared with 9.8x in 1995. Profit growth will be achieved mainly from rationalisation, most notably at the 51%-owned German subsidiary Didier Werke.