Eramet: Oddo BHF reduces target price
(CercleFinance.com) - Oddo BHF maintains its "neutral" rating on Eramet shares, trimming its target price for them from E91 to E89.
The analyst says that while major mining groups (Rio Tinto, BHP, Anglo American) are currently benefiting from high copper, particularly iron prices, this is not the case for Eramet, which is mainly exposed to manganese and nickel.
With Eramet set to publish its Q3 sales on 26 October, Oddo BHF forecasts sales of E899m (excluding ETI, which it sold on 21 September), down 29% y-o-y due to the fall in raw materials prices.
However, Oddo BHF has nudged up its 2023 forecasts to incorporate a slightly more optimistic scenario for nickel, with the recent rise in ore prices and higher production figures for SLN.
Copyright (c) 2023 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 analyst says that while major mining groups (Rio Tinto, BHP, Anglo American) are currently benefiting from high copper, particularly iron prices, this is not the case for Eramet, which is mainly exposed to manganese and nickel.
With Eramet set to publish its Q3 sales on 26 October, Oddo BHF forecasts sales of E899m (excluding ETI, which it sold on 21 September), down 29% y-o-y due to the fall in raw materials prices.
However, Oddo BHF has nudged up its 2023 forecasts to incorporate a slightly more optimistic scenario for nickel, with the recent rise in ore prices and higher production figures for SLN.
Copyright (c) 2023 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.