Rubis: Portzamparc upgrades share
(CercleFinance.com) - Portzamparc, the broker that is specailised in Parisian "smidcaps", has reviewed the Rubis share, now believing that investors should buy the share.
As such, the broker has upgraded its "hold" rating to "reinforce" and has increased its corresponding target price from 52.8 euros to 55.1 euros.
After a complicated year in 2018, which overall saw the group reporting flat results, in 2019 Portzamparc expects significant growth in EBITDA (+14%) and net attributable income (+19%). It says that this earnings growth will be balanced between organic growth and the contribution from Kenolkobil, which it considers a particularly relevant acquisition, analysts say, who believe that Rubis still has the resources that are necessary for other external growth operations. Not to mention an improvement in the situation of the group's Turkish subsidiary, or even a return of the contango on oil prices.
The broker's comments say that the newsflow should be favourable over the coming months and that the share's is trading at multiples that are below their historical levels. This backs its rating upgrade on the share.
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.
As such, the broker has upgraded its "hold" rating to "reinforce" and has increased its corresponding target price from 52.8 euros to 55.1 euros.
After a complicated year in 2018, which overall saw the group reporting flat results, in 2019 Portzamparc expects significant growth in EBITDA (+14%) and net attributable income (+19%). It says that this earnings growth will be balanced between organic growth and the contribution from Kenolkobil, which it considers a particularly relevant acquisition, analysts say, who believe that Rubis still has the resources that are necessary for other external growth operations. Not to mention an improvement in the situation of the group's Turkish subsidiary, or even a return of the contango on oil prices.
The broker's comments say that the newsflow should be favourable over the coming months and that the share's is trading at multiples that are below their historical levels. This backs its rating upgrade on the share.
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.