(News Bulletin 247) – AlphaValue on Wednesday renewed its recommendation to ‘lighten up’ Eramet, with a target price of 76.1 euros, after the coup in Gabon, a country deemed ‘key’ for the mining group French.
In a research note, the design office recalls that Eramet produces 100% of its manganese in Gabon, specifying in passing that the ore now represents 60% of its turnover.
Worse, he adds, the metal now generates 90% of its current operating income (Ebitda) due to the difficulties currently encountered by its activities in nickel and mineral sands.
Knowing that the country’s borders have been closed, the independent firm believes that in any case it is to be expected that the company’s performance will be affected by these political unrest.
‘Whether it lasts for a few days or for months, any climate of political instability in the country would only penalize the results of the group’, he continues.
“The outcome of the coup is still uncertain, but its impact could be enormous,” warns AlphaValue, which points out that the file could weigh on the title for a while, the markets tending to hate uncertainty.
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