(News Bulletin 247) – Credit Suisse announced on Friday that it had lowered its price target on Nexans from 104 to 100 euros, while renewing its ‘neutral’ opinion on the stock.
In a note devoted to the European cable sector, the intermediary estimates that only the Italian Prysmian seems able to generate a return on free cash flow (FCF) of 5% while increasing its capacities in high voltage networks.
Credit Suisse explains that it has identified a ‘structural’ imbalance in this segment, forcing the managers of the energy transport networks to plan construction sites today by 2026-2031.
The analyst is also optimistic about the medium-voltage installation sector, which he sees growing at an average annual rate of 4% to 7% by 2030, driven by electrification, renewable energies and modernization of equipment.
Based on all these observations, the professional makes Prysmian his ‘preferred value’ within the sector.
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