Osram: Jefferies maintains 'buy' rating

(CercleFinance.com) - Jefferies has kept its 48-euro target price on Osram unchanged and maintains its "buy" rating on the share, predicting another difficult year after the German lighting group had a "very weak start to the year.
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The US broker noted that the company has pre-released poor numbers for the first quarter, prompting another cut in its forecasts.

But the news that Osram is in talks with Bain/Carlyle about a possible bid makes conventional valuation irrelevant, the broker added, with the most important thing in the short-term being whether a formal bid will be made or not.

"We still think Osram is a fundamentally sound business going through a prolonged period of weak demand," Jefferies wrote in a note to clients.

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