CGG: collapses after a negative analysis.
(CercleFinance.com) - The CGG stock is down -16% today, after Portzamparc downgraded its rating on the stock.
The broker, which is specialised in Parisian Midcaps, does not believe in the speculative interest surrounding CGG: this morning its analysts downgraded their rating on the stock from "hold" to "sell." They maintain their corresponding target price at 4.3 euros.
The oil services company has just announced the launch of an extensive multi-client study offshore in Brazil. Its results are expected in September 2018.
In particular, Portzamparc points out that the share price has soared by 75% since 22 August "on potential interest from Sinopec," the Chinese petrochemicals giant, according to a rumor circulating on Twitter.
The broker's analysts consider this to be "unlikely" as CGG is still undergoing much restructuring, not to mention the "strategic, technological and social interests which the French state has in CGG", In addition, the current source of the rumor. "The buy-back of short positions could have amplified the rebound in the share price," Portzamparc admits.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The broker, which is specialised in Parisian Midcaps, does not believe in the speculative interest surrounding CGG: this morning its analysts downgraded their rating on the stock from "hold" to "sell." They maintain their corresponding target price at 4.3 euros.
The oil services company has just announced the launch of an extensive multi-client study offshore in Brazil. Its results are expected in September 2018.
In particular, Portzamparc points out that the share price has soared by 75% since 22 August "on potential interest from Sinopec," the Chinese petrochemicals giant, according to a rumor circulating on Twitter.
The broker's analysts consider this to be "unlikely" as CGG is still undergoing much restructuring, not to mention the "strategic, technological and social interests which the French state has in CGG", In addition, the current source of the rumor. "The buy-back of short positions could have amplified the rebound in the share price," Portzamparc admits.
Copyright (c) 2017 CercleFinance.com. All rights reserved.