Eramet: Stifel double downgrades stock

(CercleFinance.com) - Stifel downgrades Eramet from 'buy' to 'sell', with a target price slashed from E150 to E45, the day after the mining group cut its manganese and nickel ore production forecasts.


This revision, combined with the fall in manganese prices, leads the broker to sharply reduce its earnings estimates. On a more serious note, this announcement changes the Group's profile, it says, and it will have to focus on optimising its costs.

With no further growth prospects (apart from lithium), Eramet can no longer expect a fundamental revaluation of its share price, Stifel summarises.


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