Wendel: Société Générale upgrades to buy.
(CercleFinance.com) - Société Générale (SG) has upgraded its hold rating on the Wendel stock to buy.
Analysts have highlighted the reduction in the group's debt and an increase in the value of its unlisted investments. They have raised their 12-month target price for the share from 146 euros to 153 euros.
Wendel recently reduced its stake Saint-Gobain's capital to 2.5% and consequently its listed assets (which particularly include 40.6% of Bureau Veritas) now only represent around 35% of its portfolio. In addition, Wendel's "loan to value" ratio (LTV, i.e. the ratio of loans to the value of the asset acquired thereby) has, according to SG, fallen back towards 10%.
At the same time, Constantia Flexibles, in which Wendel holds 61% of the capital, has sold its Multi-Color division for 1.1 billion euros. According to SG, this is a "transformative" deal, which enables Constantia to concentrate on flexible packaging, reduce its debt and consider making new acquisitions.
Copyright (c) 2017 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.
Analysts have highlighted the reduction in the group's debt and an increase in the value of its unlisted investments. They have raised their 12-month target price for the share from 146 euros to 153 euros.
Wendel recently reduced its stake Saint-Gobain's capital to 2.5% and consequently its listed assets (which particularly include 40.6% of Bureau Veritas) now only represent around 35% of its portfolio. In addition, Wendel's "loan to value" ratio (LTV, i.e. the ratio of loans to the value of the asset acquired thereby) has, according to SG, fallen back towards 10%.
At the same time, Constantia Flexibles, in which Wendel holds 61% of the capital, has sold its Multi-Color division for 1.1 billion euros. According to SG, this is a "transformative" deal, which enables Constantia to concentrate on flexible packaging, reduce its debt and consider making new acquisitions.
Copyright (c) 2017 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.