Saint-Gobain: Barclays raises earnings estimates
(CercleFinance.com) - Barclays confirms its overweight rating on the Saint-Gobain share, while raising its target price to 41 euros (vs.
38 euros) after the group announced its H1 2020 results.
The analyst believes that most markets are recovering faster than expected and believes Saint-Gobain is well placed to benefit from a wave of development in the EU.
"We update our model post H1-20 earnings and now factor in a more supportive environment going forward, especially in construction endmarkets, with some rebound in most geographies (Europe, the US and the UK," Barclays says.
Analysts believe that the stock remains one of the cheapest in the European construction sector and does not reflect the improvement in its profile.
"Combined with additional cost savings, this leads us to raise our EBIT forecasts by 5% on average over 2020-22E," Barclays adds.
Copyright (c) 2020 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.
38 euros) after the group announced its H1 2020 results.
The analyst believes that most markets are recovering faster than expected and believes Saint-Gobain is well placed to benefit from a wave of development in the EU.
"We update our model post H1-20 earnings and now factor in a more supportive environment going forward, especially in construction endmarkets, with some rebound in most geographies (Europe, the US and the UK," Barclays says.
Analysts believe that the stock remains one of the cheapest in the European construction sector and does not reflect the improvement in its profile.
"Combined with additional cost savings, this leads us to raise our EBIT forecasts by 5% on average over 2020-22E," Barclays adds.
Copyright (c) 2020 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.