On Tuesday, Deutsche Bank downgraded its recommendation on Euroapi shares from 'hold' to 'sell', with the target price halved from six to three euros, citing fears that the group's restructuring will take several years to complete.

In their note, analysts say they are disappointed by last week's strategic presentation and the lack of more specific details concerning cost reductions, sources of financing and medium-term objectives.

Overall, it appears that operational visibility remains low", worries the research department, which estimates that the reorganization and investments in progress could require an additional need for funds of around 70 million euros between now and 2027, probably via recourse to dilutive financing tools, warns the research department.

On the basis of these elements, Deutsche Bank says it expects the stock to underperform.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.