OMV: shares jump after UBS upgrade
(CercleFinance.com) - Shares of Austrian oil and gas company OMV are up over 4% on Tuesday, after UBS upgraded the stock to "buy," citing an "underestimated" pace of deleveraging.
UBS says that the earnings and cashflow potential of OMV's petrochemical business, which it expanded with the recent acquisition of Borealis, is underestimated by the market.
"We also expect the pace of deleveraging to surprise positively thanks to
new disposals announced at the full-year results," UBS says, raising its target price for the share to 43 euros from 37 euros.
It sees gearing (the group's debt to equity ratio) falling to below the company's 30% target by the end of this, before dropping to 28% by the end of 2022.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
UBS says that the earnings and cashflow potential of OMV's petrochemical business, which it expanded with the recent acquisition of Borealis, is underestimated by the market.
"We also expect the pace of deleveraging to surprise positively thanks to
new disposals announced at the full-year results," UBS says, raising its target price for the share to 43 euros from 37 euros.
It sees gearing (the group's debt to equity ratio) falling to below the company's 30% target by the end of this, before dropping to 28% by the end of 2022.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.