Nexans: Oddo cuts target price after warning

(CercleFinance.com) - Oddo has confirmed its Neutral rating on the Nexans stock, although has cut its target price to 33 euros (against 40 euros) after the group announced that it is reducing its targets for 2018.


This is mainly due to recent downgrades in its forecasts for high voltage projects in the second half of 2018, the broker said in its daily equity report.

A weak level of new orders in H1 2018 for terrestrial high voltage projects suggests that sales will be fairly poor in H2, it continued.

The group now expects flat organic sales in 2018, with consolidated EBITDA that could reach 350 million euros, against 411 million euros in 2017. For H1 2018, the cable manufacturer expects a slight fall in its sales, with EBITDA of around 150 million euros.


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