Geberit: Barclays starts monitoring with underweight rating
(CercleFinance.com) - Barclays has begun to monitor the Geberit share with an "underweight" recommendation and a target price of 410 Swiss francs, deeming that the share price's performance "is fuelled by a flight to quality increasingly disconnected from fundamentals".
In its note, the broker acknowledges that the Swiss manufacturer of sanitary systems "offers defensive end-market exposure and an excellent track record of organic revenue growth, margin stability and cash generation".
However, Barclays believes that investors are neglecting risks related to organic growth prospects and demanding expectations. It thus sees "earnings risk on a 12-month view as the main catalyst".
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