Suez: Jefferies downgrades buy rating; slashes target price
(CercleFinance.com) - This morning broker Jefferies downgraded its buy rating on the share of utilities group Suez, which it now recommends investors hold.
Likewise, the broker has slashed its target price from 19 euros to 10.5 euros (-44.7%) after a sharp cut to earnings estimates.
"While we expect Suez's stock to fare better in 2019 than last year, we see several headwinds ahead," the broker's report laments. The first of these is a challenging macro backdrop for Suez's European waste and industrial water services business, which are the most cyclical, unlike Water.
Another point - which is more financial this time: Jefferies has slashed its EPS estimates for Suez to 0.38 euro (-64.8%) for 2018, before 0.52 euro (-57.4%) in 2019, compared with expected dividends of 0.65 euros for both these years. Finally, the broker expects that the consensus will cut its earnings estimates, while the Suez share is already expensive.
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.
Likewise, the broker has slashed its target price from 19 euros to 10.5 euros (-44.7%) after a sharp cut to earnings estimates.
"While we expect Suez's stock to fare better in 2019 than last year, we see several headwinds ahead," the broker's report laments. The first of these is a challenging macro backdrop for Suez's European waste and industrial water services business, which are the most cyclical, unlike Water.
Another point - which is more financial this time: Jefferies has slashed its EPS estimates for Suez to 0.38 euro (-64.8%) for 2018, before 0.52 euro (-57.4%) in 2019, compared with expected dividends of 0.65 euros for both these years. Finally, the broker expects that the consensus will cut its earnings estimates, while the Suez share is already expensive.
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.