Linde: BarCap remains 'overweight'
(CercleFinance.com) - Barclays Capital said on Tuesday that it remained positive on the shares of German industrial gas company Linde with just one month left before its merger with Praxair is required to close, with the broker maintaining its "overweight" rating on the stock.
In the merger scenario, the shares are worth over 240 euros at the end of 2020, the broker says, but BarCap believes that they could reach this price sooner.
However, Barclays also says that risk/reward has become "more balanced" lately.
In a no-deal scenario, it sees Linde's stand-alone fair value at 190 euros.
"While the shares may initially drop further, downside should be limited by: (1) favourable fundamentals, (2) valuation and (3) the potential for the deal to restart," BarCap adds.
Shares in Lince are currently trading at 207.9 euros, down 0.2%, just underperforming the DAX 30 index, which is down 0.1%.
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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.
In the merger scenario, the shares are worth over 240 euros at the end of 2020, the broker says, but BarCap believes that they could reach this price sooner.
However, Barclays also says that risk/reward has become "more balanced" lately.
In a no-deal scenario, it sees Linde's stand-alone fair value at 190 euros.
"While the shares may initially drop further, downside should be limited by: (1) favourable fundamentals, (2) valuation and (3) the potential for the deal to restart," BarCap adds.
Shares in Lince are currently trading at 207.9 euros, down 0.2%, just underperforming the DAX 30 index, which is down 0.1%.
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.