Mersen: Berenberg reduces target price
(CercleFinance.com) - Berenberg announced on Wednesday that it had lowered its target price for Mersen shares from E45 to E41, while maintaining its buy recommendation on the stock.
The analyst said that he saw an opportunity for the stock, which in his view was at a discount, despite its positioning in the silicon carbide (SiC) market required for power semiconductors.
Although Mersen recently confirmed its targets for both 2024 and 2027, the stock is struggling to generate a solid performance on the stock market, the broker notes.
We believe this is mainly due to the weak momentum of the electric vehicle market, which alone accounts for more than half of the silicon carbide market, it explains.
While we agree that the sentiment surrounding electric vehicles should prevent any stock market revaluation in the short term, we also consider the current valuation to be unflattering, Berenberg concludes.
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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.
The analyst said that he saw an opportunity for the stock, which in his view was at a discount, despite its positioning in the silicon carbide (SiC) market required for power semiconductors.
Although Mersen recently confirmed its targets for both 2024 and 2027, the stock is struggling to generate a solid performance on the stock market, the broker notes.
We believe this is mainly due to the weak momentum of the electric vehicle market, which alone accounts for more than half of the silicon carbide market, it explains.
While we agree that the sentiment surrounding electric vehicles should prevent any stock market revaluation in the short term, we also consider the current valuation to be unflattering, Berenberg concludes.
Copyright (c) 2024 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.