Nexans: HSBC raises target price

(CercleFinance.com) - HSBC announced on Monday that it had raised its target price for Nexans shares from E97 to E105, while maintaining its Buy rating on the stock, following a meeting with the cable manufacturer's CFO.


The broker explains that it has raised its earnings forecasts following this meeting, which it believes highlighted continuing solid demand for the group's main markets, across all business sectors.

In its view, 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 says it hopes the group will venture 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 EuroAsia project could compromise the Group's margins in H2.


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