Kuehne + Nagel: UBS upgrades to buy
(CercleFinance.com) - UBS has upgraded its rating on the stock of the Swiss logistics group Kuehne + Nagel to neutral, which it considers is oversold.
The broker has raised its 12-month target price from 158 Swiss francs to 169 Swiss francs, representing upside potential of over 20%.
UBS believes that the market is overly worried about the impact "of slowing trade volumes": indeed, they are falling a bit, although the stockmarket is currently factoring in sales volumes growth of 1% to 3% p.a. through to 2022.
"Moreover, K+N has shown that it can gain market share even in moderating trade environments like that of 2009." The group could also improve its profitability, thanks to its new information systems. UBS says that all these items are not priced in.
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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 has raised its 12-month target price from 158 Swiss francs to 169 Swiss francs, representing upside potential of over 20%.
UBS believes that the market is overly worried about the impact "of slowing trade volumes": indeed, they are falling a bit, although the stockmarket is currently factoring in sales volumes growth of 1% to 3% p.a. through to 2022.
"Moreover, K+N has shown that it can gain market share even in moderating trade environments like that of 2009." The group could also improve its profitability, thanks to its new information systems. UBS says that all these items are not priced in.
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.