Axel Springer: UBS downgrade 'buy' rating
(CercleFinance.com) - UBS has downgraded its “buy” recommendation on the Axel Springer share from "buy" to "neutral," although has raised its target price from 56.
5 euros to 63 euros, which gives the German media group's share token upside potential of 2%.
The broker says that it sees a high probability that the offer will continue, given the stock's attractive valuation and low earnings momentum; it has therefore cut its 2019-2021 EPS estimates by 7% to 22% to reflect the new targets.
Note that last week the US investment group KKR announced a takeover bid on Axel Springer at a price of 63 euros per share, in order to support the company's strategy.
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