Putting it in a nutshell, we see no short-term catalysts for share price appreciation. And we believe that there is even a downside risk, because of the lack of equilibrium in either EBITDA generation or net profit (including the equity-accounted Mexico), with too much exposure to North America. Consequently, following this trading update, we will lower our target price, which could lead to a change in recommendation from Add to Reduce.

14 May 2018
Q1 18: sharp disappointment, US (72% of FY17 EBITDA) worries us

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Q1 18: sharp disappointment, US (72% of FY17 EBITDA) worries us
Buzzi Spa (BZU:WBO) | 0 0 1.6% | Mkt Cap: 4,003m
- Published:
14 May 2018 -
Author:
Felix Brunotte -
Pages:
3 -
Putting it in a nutshell, we see no short-term catalysts for share price appreciation. And we believe that there is even a downside risk, because of the lack of equilibrium in either EBITDA generation or net profit (including the equity-accounted Mexico), with too much exposure to North America. Consequently, following this trading update, we will lower our target price, which could lead to a change in recommendation from Add to Reduce.