Nexans: hit by a negative analysis
(CercleFinance.com) - The sharpest faller in the SBF 120 index today, Nexans is down 7% at luchtime, with Swiss broker Credit Suisse having downgraded its “buy” rating on the stock, for which it now has doubts over the group's “recovery.
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Having cut its target price from 37 euros to 27 euros, Credit Suisse believes that the group's H1 margins disappointed to the point of further threatening the group's "guidance" for 2018. In addition, analysts are concerned about margins of the potential Hornsea 2 contract (an offshore wind field off the English coast), on which Nexans is well placed.
Finally, Nexans' new boss may announce further restructuring: without questioning this prospect, analysts believe that this will weigh on the group's cash.
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.
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Having cut its target price from 37 euros to 27 euros, Credit Suisse believes that the group's H1 margins disappointed to the point of further threatening the group's "guidance" for 2018. In addition, analysts are concerned about margins of the potential Hornsea 2 contract (an offshore wind field off the English coast), on which Nexans is well placed.
Finally, Nexans' new boss may announce further restructuring: without questioning this prospect, analysts believe that this will weigh on the group's cash.
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.