TomTom: shares rise after UBS upgrade
(CercleFinance.com) - Investors pushed TomTom shares higher on Wednesday after the Swiss private bank UBS upgraded the Dutch digital mapping company, saying its "strong balance sheet" deserves attention.
Earlier this morning UBS upgraded the stock from "neutral" to "buy," while shaving a fraction off its target price, which it has cut from 10 euros to 9.8 euros.
Despite its recent performance (the stock is down 35% year-to-date), the investment bank points out that the navigation company has a "strong" balance sheet, with no debt and net cash of over 400 million euros, representing more than 50% of its market capitalisation.
On top of that, UBS also believes that TomTom can outperform the automotive market, driven by its increased penetration of the in-dash navigation business.
The TomTom shares are currently up 0.4% on Euronext Amsterdam, compared to a 3% drop in the Dutch stock market.
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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.
Earlier this morning UBS upgraded the stock from "neutral" to "buy," while shaving a fraction off its target price, which it has cut from 10 euros to 9.8 euros.
Despite its recent performance (the stock is down 35% year-to-date), the investment bank points out that the navigation company has a "strong" balance sheet, with no debt and net cash of over 400 million euros, representing more than 50% of its market capitalisation.
On top of that, UBS also believes that TomTom can outperform the automotive market, driven by its increased penetration of the in-dash navigation business.
The TomTom shares are currently up 0.4% on Euronext Amsterdam, compared to a 3% drop in the Dutch stock market.
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.