PSI "buy," target price reduced

Analyst Simon Scholes of First Berlin maintains his "buy" rating on PSI AG (PSA2), while reducing his estimates for the company.

The target price has been reduced from €7.00 to €6.50.

In a research note published this morning, the analyst mentions that the company has recently posted its 2007 results in-line with the estimates. The operating profit estimate for 2008 has been reduced from €5.7 million to €5.2 million to more accurately reflect the guidance. The economic slowdown in the US is expected to result in a decline in investment spending levels in Germany in 2009, the analyst says. The EPS estimates for 2008 and 2009 have been reduced from €0.35 to €0.31 and from €0.53 to €0.44, respectively.