Zodiac Aerospace: UBS cuts target price to 25.5 euros.
(CercleFinance.com) - UBS analysts are almost certain that Safran will buy its competitor Zodiac Aerospace, with a takeover bid announced at the beginning of the year.
However, the "warning" that Zodiac made in the meantime will lower the share price. With a Neutral rating on the share, analysts are cutting their target price from 29.50 euros to 25.5 euros.
“We continue to believe Safran's interest to acquire Zodiac is unchanged, however post our meetings at the Hamburg Interiors Expo, we think the financial terms of the deal could be modified," the broker's report states.
Indeed, competition is fierce in some Zodiac's businesses; in addition, after the latest profit warning issued by Zodiac, Safran has said that it will take this into account. In short, the takeover bid that was initially announced at 29.47 euros may well be reduced.
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