Intertek: Credit Suisse upgrades 'underperform' rating
(CercleFinance.com) - Credit Suisse has upgraded its "underperform" rating on the Intertek share to "neutral," despite cutting its corresponding target price from 5,500 pence to 4,550 pence, in a report on European companies operating in inspection and certification services.
However, the broker has reduced its operating profit (EBITA) forecast for 2020 by an average of 14% in the sector (vs. 18% for Intertek), 13% of which is due to the coronavirus epidemic and 1% due to lower oil prices.
"We think, however, that the businesses will return to essentially normal operations in 2021 (excluding some lingering oil impact), implying a strong growth rebound next year and EPS forecasts that are only 6% below our previous forecasts," the broker 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.
However, the broker has reduced its operating profit (EBITA) forecast for 2020 by an average of 14% in the sector (vs. 18% for Intertek), 13% of which is due to the coronavirus epidemic and 1% due to lower oil prices.
"We think, however, that the businesses will return to essentially normal operations in 2021 (excluding some lingering oil impact), implying a strong growth rebound next year and EPS forecasts that are only 6% below our previous forecasts," the broker says.
Copyright (c) 2020 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.