Nexans is gaining ground on the stock market on Monday, with HSBC raising its target price for the stock from 97 to 105 euros, while maintaining its Buy rating, following a meeting with the cable manufacturer's CFO.

The broker explained that it had raised its earnings forecasts following the meeting, which it said highlighted continued solid demand for the group's main markets, across all business sectors.

In its view, Nexans' focus on profitability rather than sales volumes should enable it to improve its profit margins over the medium term.

In the longer term, the broker hopes that the Group will dare to unveil earnings prospects to 2027 at its next investor day, as its Italian rival Prysmian recently did.

HSBC warns, however, that delays in the execution of the EuroAsia project could compromise the Group's margins in the second half of the year.

At 12:20 pm, the share price was up around 1%, compared with a rise of around 0.5% for the SBF 120 index.

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