SGS: BarCap upgrades stock
(CercleFinance.com) - Barclays Capital (BarCap) has upgraded its rating on the Swiss consulting, control and certification group SGS from "weight in line" to "overweight".
Along with this upgrade, it has raised its corresponding target price by 19% to 2850 Swiss francs.
Accelerating organic growth now justifies the share's current valuation and upside potential, which is related to the recovery in oil-gas, minerals and industry, which suggest that the stock will now outperform, the broker says.
The broker expects an organic EPS growth of 9% p.a. over the next three years, although estimates that a more optimistic scenario could add 2-3% per year. "A solid balance sheet could also add 3%-4% per year to EPS if invested wisely, it continues.
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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.
Along with this upgrade, it has raised its corresponding target price by 19% to 2850 Swiss francs.
Accelerating organic growth now justifies the share's current valuation and upside potential, which is related to the recovery in oil-gas, minerals and industry, which suggest that the stock will now outperform, the broker says.
The broker expects an organic EPS growth of 9% p.a. over the next three years, although estimates that a more optimistic scenario could add 2-3% per year. "A solid balance sheet could also add 3%-4% per year to EPS if invested wisely, it continues.
Copyright (c) 2018 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.