Berenberg announced on Monday that it had raised its price target for Nexans from 98 to 108 euros, representing potential upside of around 20%, following the announcement of the acquisition of La Triveneta Cavi.

The analyst, who maintains his buy recommendation on the stock, believes that the acquisition of this Italian company, which employs 700 people and generates annual sales of over 800 million euros, should be accretive to earnings per share (EPS) by almost 10% from the first year.

Above all, the transaction should enable the company to strengthen its position in the medium- and low-voltage cable market, emphasizes the intermediary.

In its note, Berenberg highlights attractive valuation multiples, with an Enterprise Value/Ebitda ratio of 7.5x for 2024, i.e. a 7% discount to its closest comparable Prysmian.

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