Signify: Berenberg maintains 'buy' rating
(CercleFinance.com) - Berenberg maintains a "buy" rating on Signify, with a target price of 33 euros, after spending a day with the Dutch lighting group's management in Switzerland.
In a note to clients, the broker said that the stock's low valuation does not take into account the likely return to underlying top-line growth over the next 2-3 years, nor the ongoing margin improvement opportunity.
In addition, the acquisition of Cooper Lighting not only enhances earnings, but also adds scale in the US, with revenues for Signify's Professional division increasing by 4-5x.
As such, the group could become a significant number-two challenger to market leader Acuity, Berenberg said.
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.
In a note to clients, the broker said that the stock's low valuation does not take into account the likely return to underlying top-line growth over the next 2-3 years, nor the ongoing margin improvement opportunity.
In addition, the acquisition of Cooper Lighting not only enhances earnings, but also adds scale in the US, with revenues for Signify's Professional division increasing by 4-5x.
As such, the group could become a significant number-two challenger to market leader Acuity, Berenberg said.
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.