SES: Credit Suisse cuts target price
(CercleFinance.com) - Crédit Suisse confirms its outperform recommendation on the SES share, while cutting its target price to 12 euros (vs.
19 euros).
"In the context of the recent significant market sell-off, we view global satellites as defensive, having very low sensitivity to COVID-19. We are 4% ahead of 2022E SES consensus EBITDA and continue to prefer SES to Eutelsat (Neutral)."
"We cut 2020E-22E SES revenue forecasts by 7-10% but believe SES can maintain its EBITDA margin at c.60% due to (1) cost cutting aimed at saving E40-50m pa from 2021E; and (2) the avoidance of extending or renewing very low-margin Video activities," Crédit Suisse adds.
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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.
19 euros).
"In the context of the recent significant market sell-off, we view global satellites as defensive, having very low sensitivity to COVID-19. We are 4% ahead of 2022E SES consensus EBITDA and continue to prefer SES to Eutelsat (Neutral)."
"We cut 2020E-22E SES revenue forecasts by 7-10% but believe SES can maintain its EBITDA margin at c.60% due to (1) cost cutting aimed at saving E40-50m pa from 2021E; and (2) the avoidance of extending or renewing very low-margin Video activities," Crédit Suisse 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.