Schneider: Oddo downgrades stock
(CercleFinance.com) - Oddo has downgraded its recommendation on the Schneider stock to Neutral (vs.
Buy previously), while maintaining its target price of 74 euros.
The broker believes that the current economic slowdown will mean that the consensus will not increase, following its upward trend since early 2017 (+11% for 2019 EPS).
China and Discrete automation (23% of sales) contributed to 45% of the group's organic growth in 2018, Oddo estimates, which represents a risk for 2019-20. Finally, the stock's recent market performance means that it is now close to Oddo's target price of 74 euros.
The consensus started to raise its EPS estimates from the beginning of 2017 (+4.8% for 2018 and +11% for 2019), however the current momentum means that further increases are unlikely, apart from a few modest adjustments, Oddo adds.
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.
Buy previously), while maintaining its target price of 74 euros.
The broker believes that the current economic slowdown will mean that the consensus will not increase, following its upward trend since early 2017 (+11% for 2019 EPS).
China and Discrete automation (23% of sales) contributed to 45% of the group's organic growth in 2018, Oddo estimates, which represents a risk for 2019-20. Finally, the stock's recent market performance means that it is now close to Oddo's target price of 74 euros.
The consensus started to raise its EPS estimates from the beginning of 2017 (+4.8% for 2018 and +11% for 2019), however the current momentum means that further increases are unlikely, apart from a few modest adjustments, Oddo adds.
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.