(CercleFinance.com) – Nexans gained more than 8% in Paris after Bank of America announced that it was raising its recommendation on the stock from ‘underperformance’ to ‘buy’ with a price target raised from 65 to 100 euros.
In a research note, the analyst justifies his decision by the cable manufacturer’s high exposure to the fast-growing markets of electricity grid infrastructure and offshore wind, which together generate almost 50% of its operating profit. current (Ebitda).
He also mentions Nexans’ excellent positioning in high-voltage cables, which he attributes to the group’s footprint in the United States and to the highly profitable projects in its order book.
Finally, BofA points out that the stock has underperformed its benchmark European index, the STOXX Europe 600 Industrial Goods & Services, by 28% since the start of the year.
At current levels, the stock’s devaluation against the rest of the sector now stands at 40%, down from 10% last October, he notes, a level that he says more than reflects the risks associated with the construction and construction sectors. high voltage networks.
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