Peugeot: Bernstein enthusiastic, targets 30 euros
(CercleFinance.com) - US research firm Bernstein confirms its 'Buy' rating (“outperform”) on the Peugeot SA (PSA Group) share, qualifying half-yearly figures as “enormous”.
Although the stock won close to 10% this morning at the Paris Stock Exchange, the target price of 30 euros augurs a growth potential of more than 30%. The recovery of Opel/Vauxhall was so fast that the division's operating margins are already 5% in the first half year, it has achieved its free cash-flow objectives horizon 2020 and practically those of 2026 too.
Aside from this, Peugeot's “central” operating margin reached 8.5% (+1.2 percentage points in one year), “something that has never happened before in 30 years for a carmaker in the mass market”, calculates Bernstein, who adds: “these figures are incredible”.
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.
Although the stock won close to 10% this morning at the Paris Stock Exchange, the target price of 30 euros augurs a growth potential of more than 30%. The recovery of Opel/Vauxhall was so fast that the division's operating margins are already 5% in the first half year, it has achieved its free cash-flow objectives horizon 2020 and practically those of 2026 too.
Aside from this, Peugeot's “central” operating margin reached 8.5% (+1.2 percentage points in one year), “something that has never happened before in 30 years for a carmaker in the mass market”, calculates Bernstein, who adds: “these figures are incredible”.
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.