SES: SG cuts target but still a buyer.
(CercleFinance.com) - While Société Générale (SG) analysts "continue to downgrade SES's earnings prospects," they have not changed their buy rating on the stock.
Even though they have trimmed their 12-month target price for the share from 22.4 euros to 20.5 euros, this still entails significant upside potential.
There is no doubt: “SES's shares have entered a period of sharp underperformance, with a 27% drop from their recent (early-June) high of E23,” SG points out. Indeed, the Luxembourg satellite operator is confronted with all sorts of headwinds, most of which are beyond its control; for example, delays in satellite launches from space companies, breakdowns and an unfavourable exchange rate effect linked to the dollar's appreciation.
Still, SG believes that, "all the bad news should now be priced in, and SES shares should start bottoming out." In the meantime, the yield of over 8% offered by the stock's dividend - a priori until 2019 - far exceeds its five-year average (5%).
Copyright (c) 2017 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.
Even though they have trimmed their 12-month target price for the share from 22.4 euros to 20.5 euros, this still entails significant upside potential.
There is no doubt: “SES's shares have entered a period of sharp underperformance, with a 27% drop from their recent (early-June) high of E23,” SG points out. Indeed, the Luxembourg satellite operator is confronted with all sorts of headwinds, most of which are beyond its control; for example, delays in satellite launches from space companies, breakdowns and an unfavourable exchange rate effect linked to the dollar's appreciation.
Still, SG believes that, "all the bad news should now be priced in, and SES shares should start bottoming out." In the meantime, the yield of over 8% offered by the stock's dividend - a priori until 2019 - far exceeds its five-year average (5%).
Copyright (c) 2017 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.