Saint-Gobain: Morgan Stanley downgrades 'overweight' rating

(CercleFinance.com) - Morgan Stanley has downgraded its rating on the Saint-Gobain share from "overweight" to "weight in line;" having cut its corresponding target price reduced from 39.
2 euros to 37.5 euros, saying, "We now see better value elsewhere".

"Saint-Gobain is exposed to attractive end markets and its organizational restructuring supports margin expansion," the broker acknowledges in its note on the building materials supplier.

"However, our analysis shows its active portfolio management has a mixed track record and poor cash conversion is an obstacle to re-rating," it says.


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