`buy' from `hold' at abn amro

http://www.bloomberg.com/apps/news?pid=10000081&sid=aIEyQ4QH5tRc&refer=australia

Rinker Shares Raised to `Buy' From `Hold' at ABN Amro

April 7 (Bloomberg) -- Rinker Group Ltd., the third-biggest building materials maker in the U.S., was raised to ``buy'' from ``hold'' at ABN Amro Holding NV after the company yesterday increased its earnings forecast.

The brokerage raised its 12-month price target for the stock by 40 percent to A$24.50 a share, Simon Thackray, an analyst at ABN in Sydney, wrote in a note to clients today.

Rinker rose 7.7 percent to a record A$21.74 yesterday after the Sydney-based company said net income in the year ended March 31 climbed 50 percent to $740 million, and forecast a 15 percent increase in earnings in the current year on buoyant demand in Florida and Arizona.

With the positive outlook, Rinker will be able to generate enough cash to expand by takeovers or return capital to shareholders, ABN said.