Plastic Omnium: attractive entry point, UBS says
(CercleFinance.com) - This morning UBS reviewed several automotive suppliers, and it is now more aggressive on one of them: the French company Plastic Omnium, whose share it has upgraded to “buy,” against a previous neutral rating.
The broker has raised its 12m target price for the share from 25 euros to 27 euros, which suggests upside potential of over 10%.
Since June, the price of the Plastic Omnium share has practically halved, due to worries about the business cycle and a general de-rating of the auto sector. "Less than half the decline is explained by EPS downgrades though" UBS says. As a result, the Plastic Omnium share is now trading at its lowest level for six years, trading at a 2020 P/E of just 6.7x. This price incorporates much more than just a cyclical downturn and seems unduly low, UBS believes, which in it identifies an attractive entry point.
"Plastic Omnium one of our new best ideas for 2019," the broker's report says.
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.
The broker has raised its 12m target price for the share from 25 euros to 27 euros, which suggests upside potential of over 10%.
Since June, the price of the Plastic Omnium share has practically halved, due to worries about the business cycle and a general de-rating of the auto sector. "Less than half the decline is explained by EPS downgrades though" UBS says. As a result, the Plastic Omnium share is now trading at its lowest level for six years, trading at a 2020 P/E of just 6.7x. This price incorporates much more than just a cyclical downturn and seems unduly low, UBS believes, which in it identifies an attractive entry point.
"Plastic Omnium one of our new best ideas for 2019," the broker's report says.
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.