Rubis: Berenberg no longer a buyer
(CercleFinance.com) - Broker Berenberg downgraded its buy rating on the Rubis share to hold.
Its target price of 62 euros "offers limited potential," it says in a report - the share price has fallen by over 5% on the Paris Stock Exchange this morning.
Indeed, analysts continue to appreciate Rubis' niche positioning, its diversified geographic exposure, and its proven ability in completing value-creating acquisitions.
However, after a recent telephone interview with CFO Bruno Krief, Berenberg understands that some of the weakness that have hit the group's storage business (about 20% of operating income, ed) in the first quarter is likely continue in the near future. Analysts have therefore reduced their projections: - 3% for operating income in 2018 and 2019, and - 5%/- 6% for EPS, to also take into account also the increase in the number of shares that in particular are related to a dividend payment in shares.
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.
Its target price of 62 euros "offers limited potential," it says in a report - the share price has fallen by over 5% on the Paris Stock Exchange this morning.
Indeed, analysts continue to appreciate Rubis' niche positioning, its diversified geographic exposure, and its proven ability in completing value-creating acquisitions.
However, after a recent telephone interview with CFO Bruno Krief, Berenberg understands that some of the weakness that have hit the group's storage business (about 20% of operating income, ed) in the first quarter is likely continue in the near future. Analysts have therefore reduced their projections: - 3% for operating income in 2018 and 2019, and - 5%/- 6% for EPS, to also take into account also the increase in the number of shares that in particular are related to a dividend payment in shares.
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.