Saint-Gobain: Bryan Garnier reviews rumours
(CercleFinance.com) - Bryan, Garnier & Co.
has reviewed the Saint-Gobain stock, after rumours that the French building materials group may be interested in the European retail division of the Irish player CRH. However, their analysts do not really believe in this. They confirm their buy rating on the stock, along with a target price of 53 euros, which suggests upside potential of over 20%.
According to this rumour, CRH would want to sell its European retail business for 2.4 billion euros, or 8.5x its 2017 EBITDA: Saint-Gobain and Kingfisher are potential candidates for its takeover.
Bryan Garnier contacted Saint-Gobain, which made "no comment". Admittedly, the French group's balance sheet situation would enable it to finance the deal without any problems. However, "we doubt very much Saint Gobain would be tempted to acquire the whole division. This is simply not in line with the group's strategy," the broker's report lamented.
Saint-Gobain could therefore be interested in just part of the assets that CRH would put up for sale, said Bryan Garnier. In these circumstances, analysts are not changing their appreciation of the share.
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.
has reviewed the Saint-Gobain stock, after rumours that the French building materials group may be interested in the European retail division of the Irish player CRH. However, their analysts do not really believe in this. They confirm their buy rating on the stock, along with a target price of 53 euros, which suggests upside potential of over 20%.
According to this rumour, CRH would want to sell its European retail business for 2.4 billion euros, or 8.5x its 2017 EBITDA: Saint-Gobain and Kingfisher are potential candidates for its takeover.
Bryan Garnier contacted Saint-Gobain, which made "no comment". Admittedly, the French group's balance sheet situation would enable it to finance the deal without any problems. However, "we doubt very much Saint Gobain would be tempted to acquire the whole division. This is simply not in line with the group's strategy," the broker's report lamented.
Saint-Gobain could therefore be interested in just part of the assets that CRH would put up for sale, said Bryan Garnier. In these circumstances, analysts are not changing their appreciation of the share.
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.