Osram: Jefferies cuts target price to 80 euros
(CercleFinance.com) - Jefferies has cut its target price to 80 euros from 100 euros on Germany's Osram, but maintained a "buy" rating on the shares, saying the recent profit warning has created an attractive entry point.
While the US broker remains "fundamentally positive" about the lighting group's prospects, it also said it "obviously underestimated" the near-term headwinds, after the profit warning sent the shares down to a 15% sector discount.
"It will take time, but we expect Osram's valuation to recover as it rebuilds credibility," it said.
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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.
While the US broker remains "fundamentally positive" about the lighting group's prospects, it also said it "obviously underestimated" the near-term headwinds, after the profit warning sent the shares down to a 15% sector discount.
"It will take time, but we expect Osram's valuation to recover as it rebuilds credibility," it said.
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.