Saint-Gobain: BarCap downgrades stock
(CercleFinance.com) - Barclays Capital (BarCap) has downgraded its rating on Saint-Gobain from "weight in line" to "underweight," having cut its target price to 39 euros, vs.
50 euros previously, highlighting "rising uncertainties" around the company.
BarCap believes that "investors underestimate the risks related to a potential French housing slowdown, as well as a more uncertain price/cost equation, given the rising energy and raw materials inflationary pressures".
Overall, the broker has reduced its EPS estimates for the building materials group by an average of 11% over 2018-2020, now expecting 18% below the consensus.
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.
50 euros previously, highlighting "rising uncertainties" around the company.
BarCap believes that "investors underestimate the risks related to a potential French housing slowdown, as well as a more uncertain price/cost equation, given the rising energy and raw materials inflationary pressures".
Overall, the broker has reduced its EPS estimates for the building materials group by an average of 11% over 2018-2020, now expecting 18% below the consensus.
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.