ADP: stock falls after broker downgrade
(CercleFinance.com) - The ADP share is down on Friday morning in Paris, after negative comments from Deutsche Bank, which considers the French group as one of the least exposed European airport operators to a potential recovery in the airline sector.
At about 10:20 am, the ADP share had fallen 0.7%, thus making it one of the biggest losers in the SBF 120 index, which at that time was up 0.2%.
In a sector report, Deutsche Bank analysts say that they have downgraded their rating on the share from "buy" to "hold" and have cut their corresponding target price from 130 euros to 90 euros.
"Fundamentally we continue to view the French airport operator as an attractive long-term investment with good exposure to international markets and a premium retail operation," the broker says.
"However, in a COVID-19 context, and therefore on a near-medium term view, we think these market exposures are likely to underperform in their recovery," Deutsche Bank adds.
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