Iliad: Berenberg downgrades stock and slashes target price
(CercleFinance.com) - Broker Berenberg has abandoned its buy rating on the Iliad share, the parent company of the telecom operator Free, now adopting a "hold" rating.
Alongside this downgrade, the broker has also slashed its target price from 199 euros to 123 euros (-38.2%), even though this remains 30% higher than the share's current price.
Indeed, analysts expect the momentum of Iliad's revenues to recover in the second half of 2019, although not only is this upturn expected to be "modest" - it is also expected to be priced in, the broker says in its comments.
Berenberg says that for it to adopt a more positive stance on Iliad depends on more visibility on sales in France - this results from strategic initiatives taken by the group and/or less competition. Meanwhile, Berenberg's best pick in the French telecom sector remains Orange, which it considers as a safe haven that is discounted.
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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.
Alongside this downgrade, the broker has also slashed its target price from 199 euros to 123 euros (-38.2%), even though this remains 30% higher than the share's current price.
Indeed, analysts expect the momentum of Iliad's revenues to recover in the second half of 2019, although not only is this upturn expected to be "modest" - it is also expected to be priced in, the broker says in its comments.
Berenberg says that for it to adopt a more positive stance on Iliad depends on more visibility on sales in France - this results from strategic initiatives taken by the group and/or less competition. Meanwhile, Berenberg's best pick in the French telecom sector remains Orange, which it considers as a safe haven that is discounted.
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.