Bouygues: Barclays downgrades stock
(CercleFinance.com) - Barclays has downgraded its rating on the Bouygues share to "equal weight," with a target price of 36 euros, despite the conglomerate's publication of better-than-expected Q2 results for both its telecoms and construction businesses.
This has led it to raise its estimates for 2020. "However we already factored in a strong recovery for 2021 so our estimates post 2020 are largely unchanged (excluding the acquisition of EIT - Euro-Information Telecom)," the broker says.
"With the stock broadly back to its levels of one year ago (incl. DPS) and having outperformed peers (+13%) and the SXXP (+3%), we take a look at valuation and conclude the stock has re-rated materially," it continues.
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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.
This has led it to raise its estimates for 2020. "However we already factored in a strong recovery for 2021 so our estimates post 2020 are largely unchanged (excluding the acquisition of EIT - Euro-Information Telecom)," the broker says.
"With the stock broadly back to its levels of one year ago (incl. DPS) and having outperformed peers (+13%) and the SXXP (+3%), we take a look at valuation and conclude the stock has re-rated materially," it continues.
Copyright (c) 2020 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.