Eramet: Oddo cuts target price

(CercleFinance.com) - After the mining and metallurgy company Eramet provided a guideline of 400 million euros for EBITDA in 2020, broker Oddo believes that this is due to external factors (depressed spot prices, unfavourable FX factors), which the group cannot offset by intrinsic progress - at least at this stage.


Analysts say that they are revising their expectations, albeit without confirming their guidelines. They maintain their price assumptions unchanged, although say that they are lowering their EBITDA estimates for 2020 and 2021, due to cost adjustments.

Oddo expects net debt to stabilise by 2020. Analysts confirm their Buy rating on the share, although have lowered their target price to 50 euros (against 71 euros). This new target price still represents over 60% upside relative to the current Eramet share price.


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