Covestro: upgraded to 'overweight' by Barclays
(CercleFinance.com) - Barclays analysts have upgraded their rating on German chemicals maker Covestro from "equal weight" to "overweight," arguing that forecasts are now sufficiently low after falling by around 40% since September.
"With that, we think that valuation has become an attractive argument again," Barclays wrote.
"On 5.3x 2019 EBITDA, Covestro is by far the cheapest stock in our coverage on earnings that are slightly below mid-cycle," the broker added.
Barclays has also nudged up its target price for the stock of Bayer's former plastics unit, from 57 euros to 58 euros.
The Covestro stock is down by 0.3% in Frankfurt, outperforming the 0.6% fall in the broader German stockmarket.
Copyright (c) 2019 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.
"With that, we think that valuation has become an attractive argument again," Barclays wrote.
"On 5.3x 2019 EBITDA, Covestro is by far the cheapest stock in our coverage on earnings that are slightly below mid-cycle," the broker added.
Barclays has also nudged up its target price for the stock of Bayer's former plastics unit, from 57 euros to 58 euros.
The Covestro stock is down by 0.3% in Frankfurt, outperforming the 0.6% fall in the broader German stockmarket.
Copyright (c) 2019 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.