STOCKS NEWS EUROPE-Kion up as Deutsche, UBS hike price targets

Shares in German forklift truck maker Kion rise 3.6 percent to the top of Germany's small-caps index in early trade, with traders pointing to price target hikes by Deutsche Bank (Xetra: DBK.DE - news) and UBS (Xetra: UB0BL6 - news) .

Deutsche Bank raises its price target on the stock to 40 euros from 34 euros and keeps its "buy" recommendation, saying Kion is best positioned among forklift truck makers to benefit from a European industrial recovery.

"If the industrial environment remains positive, the (forklift) market offers significant replacement potential in the coming years," the brokerage writes in a note to clients.

UBS lifts its price target to 35 euros from 25 euros and affirms a "neutral" rating, saying it is taking a less conservative stance on valuation now that more than half a year has passed since Kion's initial public offering.

"While our price target goes up by 40 percent from the level we set on July 5 last year, we point to the fact that other European recovery stories such as Deutz (Xetra: DEZ.DE - news) , Jungheinrich (Xetra: 621993 - news) , Palfinger (Other OTC: PLFRY - news) , Wincor and Zumtobel (Other OTC: ZMTBF - news) re-rated by 55 percent since then," it says.

Reuters messaging rm://maria.sheahan.thomsonreuters.com@reuters.net