Bureau Veritas: Morgan Stanley upgrades to 'buy'
(CercleFinance.com) - This morning Morgan Stanley resumed its coverage of certification group and compliance group Bureau Veritas with a buy rating ("overweight").
The broker's target price of 25.1 euros, suggests upside potential of over 25%, with it saying that the stock is discounted by around 16% relative to peers.
After four years of "malaise," analysts say, "its end markets (Bureau Veritas) are inflecting faster than peers," for example at the Oil & Gas and Minerals divisions. Morgan Stanley is also expecting a “recovery” at the Marine Division in 2018/2019, as figures compiled by the shipping broker Clarkson Marine suggest that end markets appear to have troughed and are beginning to inflect.
Thanks to improvements in volumes, the group's operating margin should increase from 15.9% in 2017 to 17% by 2020. Especially since the appointment of a new CFO could foreshadow a "more selective" acquisition policy.
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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.
The broker's target price of 25.1 euros, suggests upside potential of over 25%, with it saying that the stock is discounted by around 16% relative to peers.
After four years of "malaise," analysts say, "its end markets (Bureau Veritas) are inflecting faster than peers," for example at the Oil & Gas and Minerals divisions. Morgan Stanley is also expecting a “recovery” at the Marine Division in 2018/2019, as figures compiled by the shipping broker Clarkson Marine suggest that end markets appear to have troughed and are beginning to inflect.
Thanks to improvements in volumes, the group's operating margin should increase from 15.9% in 2017 to 17% by 2020. Especially since the appointment of a new CFO could foreshadow a "more selective" acquisition policy.
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.