Orpea: share falls as broker expresses caution

(CercleFinance.com) - The Orpea share fell on Friday in Paris after negative comments made by Berenberg, which judged the group's visibility limited and its valuation too high.


Towards noon, the share was one of the sharpest fallers in the SBF 120 index (+0.3%), down 0.9%.

In their comments Berenberg analysts acknowledge that the operator of retirement homes and private clinics has an occupancy rate higher than its estimates, but are still cautious about its prospects for a recovery in business in the second half of the year.

"Visibility on near-term performance remains low, but valuation is fairly close to its all-time high and we therefore believe that the risk/reward profile on the shares is skewed to the downside," the broker says.

Berenberg maintains its target price of 81 euros for the share and remains a seller.


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