Rexel: Credit Suisse upgrades 'underperform' rating
(CercleFinance.com) - As part of a report on the capital goods sector, Credit Suisse has upgraded its sell ("underperform") rating on the Rexel stock to neutral.
The broker has adjusted its target price for the share to 11.7 euros, which represents upside potential of just over 10% for this stock which has lost around 30% of its value since the beginning of 2018.
According to analysts, in this sector, growth has accelerated again, reaching 6.2% (in organic terms) in Q3, the highest level since the recovery of 2011, after about 5% over the first two quarters of year. This is despite concerns - particularly regarding construction in France. Margins have improved by an average of 30 basis points (although the consensus was expecting better at around 15 basis points).
Credit Suisse has a buy rating on "quality" files that are considered as oversold, such as Assa Abloy, Alfa Laval and Prysmian. The broker has also upgraded its ratings to "neutral" on the Rexel stock and the British group IMI.
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.
The broker has adjusted its target price for the share to 11.7 euros, which represents upside potential of just over 10% for this stock which has lost around 30% of its value since the beginning of 2018.
According to analysts, in this sector, growth has accelerated again, reaching 6.2% (in organic terms) in Q3, the highest level since the recovery of 2011, after about 5% over the first two quarters of year. This is despite concerns - particularly regarding construction in France. Margins have improved by an average of 30 basis points (although the consensus was expecting better at around 15 basis points).
Credit Suisse has a buy rating on "quality" files that are considered as oversold, such as Assa Abloy, Alfa Laval and Prysmian. The broker has also upgraded its ratings to "neutral" on the Rexel stock and the British group IMI.
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.