Vallourec: Morgan Stanley downgrades 'overweight' rating
(CercleFinance.com) - Morgan Stanley has downgraded its rating on Vallourec from "Overweight" to "Equal weight," and has slashed its target price from 11 euros to 3.
30 euros, expecting "fundamentals to take a back seat until balance sheet concerns are resolved."
The broker underlines "increasing concerns that the rising gearing ratio in 2019/20 towards covenant levels may trigger pressure from creditors, despite low risk on liquidity/solvency."
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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.
30 euros, expecting "fundamentals to take a back seat until balance sheet concerns are resolved."
The broker underlines "increasing concerns that the rising gearing ratio in 2019/20 towards covenant levels may trigger pressure from creditors, despite low risk on liquidity/solvency."
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.