Umicore: Barclays cuts target price on China program
(CercleFinance.com) - Barclays cut on Monday its target price for Belgium's Umicore share from 37 euros to 25 euros, following China's decision to remove subsidies for new energy vehicle companies after 2020.
Over the long term, the move should help secure a profitable future for China's EV industry, the broker said. However, in the short term, the outlook for demand and pricing at the Belgian specialty metals and materials maker's customers isn't good, it added.
Barclays said that its 2020 earnings forecast is now 6% below the consensus, and that it has established a realistic downside case of 20 euros.
The Umicore stock is currently down 6.9% at 28.2 euros. It has now lost almost 35% over the past month.
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