Plastic Omnium: Aurel BGC welcomes planned disposal.

(CercleFinance.com) - Aurel BGC maintains its buy rating on the Plastic Omnium share after the automotive component supplier yesterday unveiled plans to divest its Environment division.


The broker also maintains its target price for the share at 37 euros.
A “taboo” subject for many years now, the disposal of the group's Environment division has now become a reality, although at the moment it remains just a project, analysts said. It should be said that this small business, which still employs 1,800 people in six factories, only represented 6.3% of the group's consolidated sales in 2016, and just 4.4% of its operating income.

Note that in recent years, the Environment division has experienced several complicated periods due to its exposure to local authorities, Aurel BGC adds. Its analysts are therefore pleased that Plastic Omnium wants to focus its resources on the automotive division, especially as the potential sale would have an accretive effect.


Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.