OREANDA-NEWS. April 07, 2010. According to Mr. Khvorost, the CEO of Kryukovsky Railcar Plant <KVBZ UK BUY>, the Company is to produce 700 freight cars in April 2010, – which is 5% less than its performance in the previous month. Such a decline in output has been caused by the shortage of car castings. Russia is to be the principal client for the Company’s production. It was also mentioned by the CEO that KVBZ would not produce passenger railcars in April 2010.

Millennium Capital: despite some decline in April, the current output dynamics of the Company proves that it can exceed the planned output by more than 30% (at about 7800 freight cars) in 2010, which is undoubtedly positive news for the Company. At the moment, the current price is USD 3.44 per share. The target price is USD 4.5 per share. Millennium Capital gives BUY recommendation due to the fact that an upside of the Company’s shares is 30.8%.