Merck KGaA: Credit Suisse downgrades to 'neutral'
(CercleFinance.com) - Credit Suisse downgraded Germany's Merck KGaA to "neutral" from "outperform" on Thursday, citing lower earnings assumptions in liquid crystals.
The brokerage firm—which cut its price target on the stock to 106 euros from 125 euros—says the LCD panel profit cycle is reaching its peak with price pressure set to build from year-end.
"We believe that margin compression at panel manufacturers will accelerate the normalisation of high LCD market share which Merck is currently benefiting from," Credit Suisse justifies.
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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 brokerage firm—which cut its price target on the stock to 106 euros from 125 euros—says the LCD panel profit cycle is reaching its peak with price pressure set to build from year-end.
"We believe that margin compression at panel manufacturers will accelerate the normalisation of high LCD market share which Merck is currently benefiting from," Credit Suisse justifies.
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.