Nexans: share up as HSBC raises TP

(CercleFinance.com) - Nexans shares are gaining ground on Monday, with HSBC raising its target price for the stock from E97 to E105, while maintaining its Buy rating on them, following a meeting with the cable manufacturer's CFO.


The broker explained that it had raised its earnings forecasts after the meeting, which it said highlighted continued solid demand for the group's main markets, across all business sectors.

It believes that Nexans' focus on profitability rather than sales volumes should enable it to improve its profit margins over the medium term.

In the longer term, the broker hopes that the group will dare to unveil earnings prospects to 2027 at its next investor day, as its Italian rival Prysmian recently did.

HSBC warns, however, that delays in the execution of the EuroAsia project could compromise the Group's margins in H2.

At lunchtime, the share price was up around 1%, beating around a 0.5% rise in the SBF 120 index.


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