Mersen: Stifel reiterates buy rating

(CercleFinance.com) - Mersen has announced group net income (RNPG) of E59m for 2024, compared with E81.
6m in 2023.

Following this announcement, Stifel confirms its Buy rating on the stock with an unchanged target price of E40.

The analyst points out that the group has been hit by the slowdown in certain key markets and by major restructuring charges.

The Group is also cautious about the outlook for 2025, forecasting a likely decline in organic sales and a slight contraction in operating margin, Stifel says.

Given the current economic climate and uncertainties in the US, we believe that these results and forecasts nevertheless demonstrate the resilience of the French industrial group.

Stifel believes that Mersen should be able to report EBITDA of E200m this year, which would be a new record.

Furthermore, while the next publications look complicated, some markets are showing signs of rebound. This is currently the case for the semiconductor market, and should be the case for the photovoltaic market in the second half of the year, the analyst adds.

Stifel believes that Mersen, which is still trading on the lowest valuation multiples in its history, still represents an obvious buy opportunity.


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