(CercleFinance.com) – The stock soared by more than 5% after the publication of several positive analyses.
Stifel reaffirms its ‘buy’ recommendation on Mersen with a price target raised from 50 to 54 euros, returning to the publication of 2022 results deemed ‘impressive’ and solid objectives for 2023.
According to the broker, this publication from last week demonstrated once again that the industrial group specializing in graphite ‘benefits from a strong underlying dynamic linked to the energy transition’.
Stifel now anticipates organic growth of 8% per year over the period 2021-27. He thinks that ‘the new growth plan and the new leadership in SiC will give a new dimension to the group which would justify new multiples’.
Oddo BHF also reiterates its ‘outperformance’ opinion on Mersen with a price target raised from 47 to 48 euros, judging in particular that ‘the roadmap presented by management for 2027 is particularly attractive’.
‘The current operating margin target of 12% in 2027 (at plus or minus 50 basis points) seems to us totally plausible, even prudent, hence an upward revision margin despite the Capex due to a more favourable,” he points out.
“Based on this development plan, the valuation remains moderate at 6.2 times the EBITDA expected for 2024 and 9.8 times the EBIT (compared to 7.3 and 11 times for the historical references)”, underlines in in addition to the analyst in charge of the file.
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