Saint-Gobain: BarCap cuts target price
(CercleFinance.com) - Barclays Capital (BarCap) maintains its "underweight" rating on the Saint-Gobain stock, cutting its target price by 8% to 36 euros, following the publication of H1 results that it deems are weak overall.
While its H2 performance will undoubtedly be better, the broker points to a high comparison basis, uncertain prices and costs in construction products, persistent headwinds in flat glass and the group's exposure to a weaker housing cycle in France.
BarCap has updated its model for the building materials group, with a lower-than-expected number of shares, which has led it to slightly raise its EPS estimates, even though they remain about 10% below the consensus for 2019- 20.
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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.
While its H2 performance will undoubtedly be better, the broker points to a high comparison basis, uncertain prices and costs in construction products, persistent headwinds in flat glass and the group's exposure to a weaker housing cycle in France.
BarCap has updated its model for the building materials group, with a lower-than-expected number of shares, which has led it to slightly raise its EPS estimates, even though they remain about 10% below the consensus for 2019- 20.
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.