Intertek: stock falls on broker downgrade

(CercleFinance.com) - Stifel has downgraded its recommendation on Intertek shares from "buy" to "hold", having reduced its target price for them from 6,500 pence to 5,500 pence - both due to a reduction in its estimates and lower multiples resulting from higher interest rates.


"The exposure to China should particularly impact profitability, which we believe is unlikely to be offset by the oil & gas tailwind given the dilutive mix effect," the broker said about the inspection and certification services group.

"Additionally, the looming macro headwinds and recent deteriorating consumer confidence bring additional uncertainties given the concentrated portfolio, particularly geared to the consumer sector," he continued.


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