Scor: Berenberg drops buy rating

(CercleFinance.com) - Berenberg announced on Thursday that it had downgraded Scor shares from 'buy' to 'hold', with a target price reduced from E37 to E24.


In a note entitled 'One step forward, two steps back', the analyst acknowledges that he could be criticized for this downgrade at a time when the stock is trading at one-year lows, having fallen by some 36% since its recent highs.

However, the broker explains that it is difficult for him to justify a buy rating on the stock at this time.

We do not expect the share price to recover, at least not until management has clarified the root causes of the problems that led to the profit warning, he stresses.

Berenberg is also hoping for more guarantees regarding any measures that may be taken, as the hurricane season is not yet over.


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