Esker: stock slumps on broker downgrade

(CercleFinance.com) - Stifel has downgraded its rating on process automration firm Esker's shares from "buy" to "hold", despite raising its target price for them from 155 euros to 175 euros, pointing out that the stock is already trading at over 50x EPS for 2023e, and on a 2024 EV/EBITDA multiple of almost 25x.


While, after the publication of strong 2022 figures, the broker has downgraded its rating, in the absence of new catalysts, it believes that the stock still has the potential to double in value over the next three to five years.

Stifel summarises that the company retains an exceptional growth-to-quality ratio and should see a gradual increase in speculative interest in the next few years.

The share has taken badly to these comments, with it currently down over 6% in Paris.


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