UBS upgrades Vesuvius from 'sell' to 'buy'

16th Sep 2014 09:33

UBS has given molten metal flow engineering firm Vesuvius a double upgrade, raising its rating on the stock by two notches from 'sell' to 'buy' and lifting its forecasts above consensus.The bank said that the positive stance is based on: "1) confidence that self-help can deliver further margin improvement […]; and 2) a more positive outlook for European steel production (not due to stronger consumption, but rather protectionism supporting the industry)."After revising its earnings per share (EPS) forecasts, it now sits 9% above consensus for 2015 and 13% above for 2016.UBS has hiked its target price for the shares from 420p to 560p.The stock was 2.5% higher at 472p by 11:26 on Tuesday.