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PSA: Opel story increasingly convincing, broker says

(CercleFinance.com) - The Opel turnaround looks increasingly convincing for France's PSA, analysts at Sanford C.
Bernstein say.

The brokerage firm - which has an "outperform" on the French carmaker's stock - thinks that Opel-Vauxhall will be profitable in the first half of 2018.

"We are increasingly convinced that Opel can, and will, be fixed. And that it will happen much faster than promised," Bernstein writes in a note to clients.

The broker says it expects cash burn to be limited in 2018, and to be positive in 2019.

"If the latter is achieved, views on the Opel deal will be transformed. Meanwhile core PSA gets ever stronger," it says, adding that PSA stock remains "very cheap."

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