SES-Imagotag: Euroland still a buyer after results
(CercleFinance.com) - An analyst at EuroLand Corporate today says that he is maintaining his buy rating on the SES-Imagotag stock, after the group published 2018 results that overall are in line with expectations.
Given the sequential momentum and growth expected over the year, this publication should mean an end to the group's operational losses. Its ability to meet growing market demand for electronic tags and cost control should enable it to report a significant improvement in profitability over the year. A major challenge would be to manage to control the increase in its WCR (25% vs. > 30% of sales at the end of 2018) in order to cover the capex that is necessary for the company's development (about 15 million euros p.a. over the next 3 years, the broker estimates.
The broker also maintains its target price of 33.10 euros for the share.
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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.
Given the sequential momentum and growth expected over the year, this publication should mean an end to the group's operational losses. Its ability to meet growing market demand for electronic tags and cost control should enable it to report a significant improvement in profitability over the year. A major challenge would be to manage to control the increase in its WCR (25% vs. > 30% of sales at the end of 2018) in order to cover the capex that is necessary for the company's development (about 15 million euros p.a. over the next 3 years, the broker estimates.
The broker also maintains its target price of 33.10 euros for the share.
Copyright (c) 2019 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.