Moncler: UBS says wait for better entry point
(CercleFinance.com) - UBS has downgraded its rating on the Italian down jacket maker Moncler from "buy" to "neutral," citing three key reasons.
While the broker said it continues to like Moncler from a fundamental perspective, UBS pointed out that (1) the risk/reward is now balanced with the share price having risen 45% year-to-date.
The broker also noted that (2) the stock is currently pricing in a takeover premium which may or not materialise.
Finally (3) there is a possibility that Temasek may sell its 5% stake creating a short-term overhang on the shares, UBS added.
However, the analysts have nudged up their target price for the shares from 40 euros to 42 euros.
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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.
While the broker said it continues to like Moncler from a fundamental perspective, UBS pointed out that (1) the risk/reward is now balanced with the share price having risen 45% year-to-date.
The broker also noted that (2) the stock is currently pricing in a takeover premium which may or not materialise.
Finally (3) there is a possibility that Temasek may sell its 5% stake creating a short-term overhang on the shares, UBS added.
However, the analysts have nudged up their target price for the shares from 40 euros to 42 euros.
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.