Oddo BHF becomes positive on Eramet, which jumped 10% this Friday on the stock market, to 23.89 euros. The analyst firm goes from “neutral” to purchase on the record, with a target price raised by 3 euros, to 29 euros.
The Brazilian Vale announced yesterday that Vale New Caledonia (VNC) would cease its activity in early 2021, explains the office, which constitutes a major implication for the Société Le Nickel of the French group specializing in the production of nickel and manganese. This Vale announcement puts pressure on the state which could be called upon to help VNC and SLN, according to Oddo BHF.
“ Eramet’s financial and operational situation remains complicated but the catalysts (inevitable rescue of SLN, industrial solution for A&D, gradual balance sheet consolidation) that we anticipate during the first half of 2020 / early 2021 should make it possible to reduce the discount on the title on its Net Present Value ”, concludes the analysis office.
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