Eurotunnel: BarCap downgrades stock.
(CercleFinance.com) - Barclays Capital (BarCap) has downgraded its rating on Eurotunnel from "weigh in line" to "underweight," cutting its target price for the stock from 11 euros to 9 euros, following recent events in the UK.
In particular, the broker highlights a slowdown in cross-Channel traffic, with an unfavourable comparison basis in the second half, in addition to the recent terrorist attacks, which could impact Eurostar travel.
The broker has therefore reduced its estimates for the infrastructure group, now expecting results that are 16% below the consensus. "At 19.5x EBITDA, valuation does not reflect these risks." it says.
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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.
In particular, the broker highlights a slowdown in cross-Channel traffic, with an unfavourable comparison basis in the second half, in addition to the recent terrorist attacks, which could impact Eurostar travel.
The broker has therefore reduced its estimates for the infrastructure group, now expecting results that are 16% below the consensus. "At 19.5x EBITDA, valuation does not reflect these risks." it says.
Copyright (c) 2017 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.