Nexans: Crédit Suisse raises target price
(CercleFinance.com) - Credit Suisse reiterates its outperform rating on the Nexans share, with it still preferring the group to the cable company Neutralrated Prysmian.
The broker has increased its target price for the share to 78 euros (from 74 euros).
The analyst believes that the main positive points are the forecast of 29% of 2021e group EBITDA from Subsea, a further potential increase in margins based on an ambitious risk reduction strategy and improved management results in project delivery and cost reductions.
"We appreciate that the new strategic plan for portfolio rotation to Electrification embeds some risks, but ultimately view this as a positive step as it should enhance Nexans' long-term FCF and ROCE profile," the analyst says.
"We increase our 2021E-22E EBIT forecasts by 8%, we are 2% ahead of 2021E consensus EBIT," the broker adds.
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