Signify: Jefferies cuts target price; shares weak
(CercleFinance.com) - Jefferies has cut its target price for the Signify share from 24 euros to 21 euros, saying that most of the Dutch lighting group's profits are now in "structural decline.
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The US broker - which maintains an "underperform" rating on the share - believes that the company istricky to value, with lamps and LED (around 75% of group EBIT) in aggregate structural decline, professional facing weak end markets and home having excess inventory problems.
"We think consensus forecasts are too high (...) and think this is a classic value trap," Jefferies writes in a note.
Shares of Signify are currently down 2.8% at 23.5 euros on Euronext Amsterdam.
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.
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The US broker - which maintains an "underperform" rating on the share - believes that the company istricky to value, with lamps and LED (around 75% of group EBIT) in aggregate structural decline, professional facing weak end markets and home having excess inventory problems.
"We think consensus forecasts are too high (...) and think this is a classic value trap," Jefferies writes in a note.
Shares of Signify are currently down 2.8% at 23.5 euros on Euronext Amsterdam.
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.