Metro: Bernstein upgrades to 'market perform'

(CercleFinance.com) - Sanford C.
Bernstein has upgraded its rating on Germany's Metro from "underperform" to "market perform," with a target price of 16 euros, after EP Global made a bid for the entire company at this price of 16 euro per share.

The broker said it "misjudged" EP Global's eagerness to own the whole business.

"We thought the good news was priced in (we expected bid around 15 euros) and thought the market overestimated the odds of bid materialising," it wrote in a note.

Bernstein said the holding company owned by Czech billionaire Daniel Kretinsky is paying a "rather big premium" for a declining business, with a price exceeding what it paid in August (when the group took its initial stake) by 34.5%.

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