SES: Berenberg reduces target price
(CercleFinance.com) - Berenberg announced on Friday that it had reduced its target price for SES shares from 11.
2 euros to 9.2 euros, while maintaining its buy rating on the stock.
The analyst believes that the satellite operator will have to achieve three major objectives this year, in line with its investment thesis on the stock.
These include (1) launching more O3b mPower satellites for service in Q3, (2) improving its revenue and operating income performance before returning to growth next year, and (3) collecting nearly 75% of its market capitalisation from the US C-band release.
If SES is able to achieve these three (credible) targets, as analysts expect, it will be a transformational story, with a return to growth and an improved balance sheet position.
Not quite stratospheric this morning, the share is currently up 0.3%, pretty much in line with the index as things stand.
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