SGS: Credit Suisse upgrades rating.
(CercleFinance.com) - Credit Suisse has upgraded its rating on SGS from "neutral" to "outperform," and has raised its target price from 2,100 Swiss francs to 2,385 Swiss francs, anticipating a positive momentum for both organic growth and operating margins in the second half of 2017 and 2018.
The broker's analysts have raised their EPS estimates for the Swiss group, by 10 bp for 2017 and by 2% for 2018 and 2019, due to FX factors, M&A deals and better conditions in the minerals market.
According to Credit Suisse, the share of the inspection and certification services group is trading at 22.4x 2018e EPS, which represents a discount of 12% compared to its peer Intertek, compared to an average premium of 11%.
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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.
The broker's analysts have raised their EPS estimates for the Swiss group, by 10 bp for 2017 and by 2% for 2018 and 2019, due to FX factors, M&A deals and better conditions in the minerals market.
According to Credit Suisse, the share of the inspection and certification services group is trading at 22.4x 2018e EPS, which represents a discount of 12% compared to its peer Intertek, compared to an average premium of 11%.
Copyright (c) 2017 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.