PSA: Opel story increasingly convincing, broker says
(CercleFinance.com) - The Opel turnaround looks increasingly convincing for France's PSA, analysts at Sanford C.
Bernstein say.
The brokerage firm - which has an "outperform" on the French carmaker's stock - thinks that Opel-Vauxhall will be profitable in the first half of 2018.
"We are increasingly convinced that Opel can, and will, be fixed. And that it will happen much faster than promised," Bernstein writes in a note to clients.
The broker says it expects cash burn to be limited in 2018, and to be positive in 2019.
"If the latter is achieved, views on the Opel deal will be transformed. Meanwhile core PSA gets ever stronger," it says, adding that PSA stock remains "very cheap."
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.
Bernstein say.
The brokerage firm - which has an "outperform" on the French carmaker's stock - thinks that Opel-Vauxhall will be profitable in the first half of 2018.
"We are increasingly convinced that Opel can, and will, be fixed. And that it will happen much faster than promised," Bernstein writes in a note to clients.
The broker says it expects cash burn to be limited in 2018, and to be positive in 2019.
"If the latter is achieved, views on the Opel deal will be transformed. Meanwhile core PSA gets ever stronger," it says, adding that PSA stock remains "very cheap."
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.