(CercleFinance.com) – Oddo raised its opinion on Eramet on Wednesday, moving to ‘outperformance’ against ‘neutral’ so far, with a price target raised from 86 to 141 euros, which corresponds to a potential increase of 54% from Tuesday’s closing price.
Acknowledging that Eramet’s stock market performance has so far been ‘mixed’ because of a portfolio of activities focused on traditional metals (mainly manganese and nickel), the intermediary believes that the company nevertheless has ‘everything a big’.
According to the analyst, the expected improvement in the economic situation, already perceptible in the prices of raw materials, should enable the group to improve its results from the second half of 2023, before accelerating its performance in 2024 with the start of the lithium activity.
Oddo also points out that Eramet has other attractive projects in energy transition metals, which should support the increase in results and significantly improve its product mix.
‘The financial structure is now very healthy and the visibility on future results satisfactory with the sale of most underperforming activities’, he adds in his note.
“In this context, the valuation seems unfairly discounted compared to peers,” concludes Oddo.
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