Signify: Barclays double downgrades stock
(CercleFinance.com) - Barclays downgrades its recommendation on Signify directly from 'overweight' to 'underweight', with a target price slashed from E29 to E18, seeing downside potential in both revenues, margins and FCF in 2025 and 2026.
In its summary, the broker adds that it sees only limited scope for new capital allocation policies on the part of the Dutch lighting solutions specialist.
Barclays expects only E150m in cash flow by mid-2025 and around E900m in FCF from H2 2025 to 2027, to cover around E1bn in debt repayments and around E400m in dividends.
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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 information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
In its summary, the broker adds that it sees only limited scope for new capital allocation policies on the part of the Dutch lighting solutions specialist.
Barclays expects only E150m in cash flow by mid-2025 and around E900m in FCF from H2 2025 to 2027, to cover around E1bn in debt repayments and around E400m in dividends.
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.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.