Euronext: JPMorgan upgrades stock
(CercleFinance.com) - On Thursday JPMorgan upgraded its rating on Euronext shares to "overweight" (from "neutral"), citing a valuation that seems "increasingly attractive".
The broker, which also mentions a steadily improving results momentum, notes that the share is currently trading at a P/E of 13x (2023), compared with a historical average of 18x, which it considers a "significant" discount to the sector.
JPMorgan also notes that the pan-European stock exchange operator currently has a cash position of 1.1 billion euros (representing 14% of its market capitalisation), which could enable it to carry out M&A operations with an accretion of at least 10%, in addition to organic growth that has already reached 5%.
Euronext shares are "big" winners (+2%) in a lackluster market in Paris (-2.5%), current holders of the silver medal in the SBF120 index.
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