Aker Solutions: UBS cuts target price.

(CercleFinance.com) - UBS on Friday reiterated its "sell" rating on Aker Solution shares, reducing its target price on the stock from 33 Norwegian kroner to 30 Norwegian kroner to reflect "market weakness".


Based on its current valuation, the brokerage firm thinks the market is overestimating the Norwegian oil services company's potential for recovery in margins.

"The stock's premium valuation likely reflects the market's expectation of a potential change in ownership structure although that outcome is quite uncertain," UBS also commented.

In addition, the broker thinks the subsea markets will remain challenging in 2017 as oil companies continue to seek material cost reductions.

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.