Tarkett: UBS still positive before quarterly results.

(CercleFinance.com) - Ahead of Tarkett's Q1 results, which are due out on 25 April, UBS this morning confirmed its buy rating on the stock.


Clearly confident about several key markets for the flooring specialist, including Russia and the US, analysts have inched up target price for the share from 46 euros to 47 euros.

While the Tarkett share has had a good start to the year (+18.8%), its potential is not exhausted, UBS says. According to the Swiss bank, the market is not valuing average organic growth of 3.5% p.a., which the group should be able to post this until 2020. Economic conditions are improving Russia and are accelerating in the US, where the group has a strong presence. This is despite the fact that an unfavorable comparison basis in Q1 2017should lead to a slight fall of 0.1%.

However ultimately, this growth should boost margins while at its current price, UBS believes that Tarkett shares are trading at a 5% discount relative to peers.


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