KBC cuts Agfa-Gevaert citing higher cost impact in H2

Agfa Gevaert NV

02/09/2021 13:57

** KBC Securities cuts digital imaging systems producer
Agfa-Gevaert  AGFB.BR  to "accumulate" from "buy" seeing higher
prices of raw materials having stronger impact on H2 numbers
    ** The Belgian group's profitability might be more heavily
impacted by cost inflation as well as the structural decline in
its offset solutions division, the broker adds
    ** The brokerage now expects the company's division to
report an FY REBIT loss of EUR 8.6 mln ($10.18 million) on sales
of EUR 717 mln 
    ** The broker says that Agfa has been able to partially
mitigate the increased inflationary pressure, but for some
activities rises are delayed through contract mechanisms
    ** Today's drop of 1.5%, as of 1235 GMT, reduces
year-to-date gains to about 12%

($1 = 0.8437 euros)


 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))