Mersen: Berenberg reduces target price

(CercleFinance.com) - Berenberg announced on Wednesday that it had lowered its target price for Mersen shares from E45 to E41, while maintaining its buy recommendation on the stock.


The analyst said that he saw an opportunity for the stock, which in his view was at a discount, despite its positioning in the silicon carbide (SiC) market required for power semiconductors.

Although Mersen recently confirmed its targets for both 2024 and 2027, the stock is struggling to generate a solid performance on the stock market, the broker notes.

We believe this is mainly due to the weak momentum of the electric vehicle market, which alone accounts for more than half of the silicon carbide market, it explains.

While we agree that the sentiment surrounding electric vehicles should prevent any stock market revaluation in the short term, we also consider the current valuation to be unflattering, Berenberg concludes.


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