thyssenkrupp: Deutsche Bank resumes coverage with 'Hold'
(CercleFinance.com) - On Monday Deutsche Bank resumed its coverage of the thyssenkrupp share with a "hold" rating and a target price of seven euros.
In comments sent to its clients, the broker refers to a risk/return profile that has become "balanced" once again at current levels.
While it considers that a potential consolidation in the steel business and possible divestments could generate value over the medium term, Deutsche Bank believes that the market is overly optimistic about the German industrial group's cash position.
In particular, the broker fears that thyssenkrupp will consume a large share of the funds from the sale of its elevator branch until a real turnaround in its activity is seen.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.