Umicore: shares climb after reassuring results
(CercleFinance.com) - Umicore shares were up on Wednesday after the Belgian metals and speciality materials maker posted reassuring results and confirmed its outlook.
The Brussels-based company said that it delivered a "robust performance" in the first half of 2019, with revenues that were down just 3% at 1.6 billion euros and recurring EBIT that is down 8% at 240 million euros, against a backdrop of "challenging conditions."
The group stuck to its full-year guidance.
Umicore still expects full-year recurring EBIT to be in a range of 475 million euros to 525 million euros, despite weakness in the auto market and a fire that occurred at its Hoboken plant in early July.
The shares were up 9.7% at 28.6 euros in Euronext Brussels, but have lost over 42% in the past 12 months.
"We think the halving of the share price in the last year (...) has been overdone and that the theories that Umicore's EV cathode business is facing growing competitive pressures are likewise," analysts at Liberum said.
Liberum has a "buy" rating on the stock, with a target price of 44 euros.
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