Peugeot: first buy recommendation from Goldman Sachs
(CercleFinance.com) - Goldman Sachs has started to follow the share of French automaker Peugeot SA (PSA Group) with its first 'buy' recommendation and a 12-month target price of 26 euros.
The analysts consider that the group's sales should surpass the European market thanks to the new product ranges. Goldman Sachs also considers that despite the Peugeot, Citroën and DS (PCD) division retaking market share, the aggregate market share for these brands remains 190bps short of their positioning at the start of the decade. The same goes for Opel Vauxhall, which has a market share 120bps under its 2014 levels.
All in all, Peugeot still has more room for growth, whilst the group's earnings growth is the best oriented in the sector, calculates Goldman Sachs. This is why 5.5x 2020E P/E does not seem to do it justice, indicates a note.
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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.
The analysts consider that the group's sales should surpass the European market thanks to the new product ranges. Goldman Sachs also considers that despite the Peugeot, Citroën and DS (PCD) division retaking market share, the aggregate market share for these brands remains 190bps short of their positioning at the start of the decade. The same goes for Opel Vauxhall, which has a market share 120bps under its 2014 levels.
All in all, Peugeot still has more room for growth, whilst the group's earnings growth is the best oriented in the sector, calculates Goldman Sachs. This is why 5.5x 2020E P/E does not seem to do it justice, indicates a note.
Copyright (c) 2019 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.