Peugeot: Invest Securities cuts target price.
(CercleFinance.com) - In a report released this morning, Invest Securities cut its price target for the Peugeot share from 19 euros to 17.
2 euros, while confirming its "neutral" rating.
The broker reacted to an article in French newspaper Le Monde on the main conclusions of the Paris Public Prosecutor's Office following the work of the DGCCRF on polluting emissions from vehicles. According to the paper, the carmaker, which has firmly denied the accusations, would have "fraudulent" regarding almost two million vehicles and would therefore be liable to pay a fine of 5 billion euros in France.
This eventuality "would have a 5.5-euro impact on our target price, of which we are integrating 1/3 into our valuation model to take into account our doubts about the reality of the fraud," Invest Securities said, with the broker also pointing out the short-term risks on the PSA Group's news flow in China, the UK (the Brexit effect) and on integrating Opel, which will weigh on its margin.
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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.
2 euros, while confirming its "neutral" rating.
The broker reacted to an article in French newspaper Le Monde on the main conclusions of the Paris Public Prosecutor's Office following the work of the DGCCRF on polluting emissions from vehicles. According to the paper, the carmaker, which has firmly denied the accusations, would have "fraudulent" regarding almost two million vehicles and would therefore be liable to pay a fine of 5 billion euros in France.
This eventuality "would have a 5.5-euro impact on our target price, of which we are integrating 1/3 into our valuation model to take into account our doubts about the reality of the fraud," Invest Securities said, with the broker also pointing out the short-term risks on the PSA Group's news flow in China, the UK (the Brexit effect) and on integrating Opel, which will weigh on its margin.
Copyright (c) 2017 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.