Osram Licht: jefferies still a buyer; cuts target price
(CercleFinance.com) - Jefferies is maintaining its "buy" rating on Osram Licht, although has cut its target price for the share from 80 euros to 48 euros, after “The second profit warning and share price collapse have led us to fundamentally revisit our investment thesis.
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“A deep dive into Opto's finances lead us to conclude that the share price should have a floor at about E30 and our new E48 PT assumes that Opto's ROCE only recovers to half its prior peak,” the broker said.
Jefferies sees scope for Osram to get back to its January high over the next 2 years if it executes well. It therefore maintains its buy rating, “but with much less ambitious forecasts".
Copyright (c) 2018 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.
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“A deep dive into Opto's finances lead us to conclude that the share price should have a floor at about E30 and our new E48 PT assumes that Opto's ROCE only recovers to half its prior peak,” the broker said.
Jefferies sees scope for Osram to get back to its January high over the next 2 years if it executes well. It therefore maintains its buy rating, “but with much less ambitious forecasts".
Copyright (c) 2018 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.