Mersen: Berenberg reduces its price target

(CercleFinance.com) - Berenberg announced on Wednesday that it had lowered its price target for Mersen from €45 to €41, while maintaining its buy recommendation on the stock.


In a research note, the analyst said that he saw an opportunity for the stock, which in his view was at a discount despite its positioning in the silicon carbide (SiC) market required for power semiconductors.

Although Mersen recently confirmed its targets for both 2024 and 2027, the stock is struggling to generate a solid performance on the stock market", observes the financial intermediary.

We believe this is mainly due to the weak momentum of the electric vehicle market, which alone accounts for more than half of the silicon carbide market", he explains.

"While we agree that the sentiment surrounding electric vehicles should prevent any stock market revaluation in the short term, we also consider the current valuation to be unflattering", concludes Berenberg.

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