Bossard: UBS sees risk/reward balanced, ups to "neutral"

Bossard Holding AG

06/04/2020 10:31

** UBS upgrades Swiss industrial service group Bossard
Holding  BOS.S  to "neutral" from "sell" and cuts its target
price to CHF 107 FROM CHF 127 saying it sees risks and rewards
balanced 
    ** The brokerage says that recent escalation linked to the
coronavirus intensified near-term concerns about Bossard's
top-line prospects to a materially larger degree than what it
had anticipated 
    ** The broker says it sees these concerns now well reflected
in Bossard's valuation 
    ** Bossard's current valuation implies an average sales
growth rate of 2-3% and an EBIT margin of 10-11% between
2020-24, which the broker says is much in line with its
estimates
    ** It expects Bossard's organic top line to decline by 14%
in 2020, which is well above the 29% organic revenue decline
that Bossard faced in 2009  


 ((marta.frackowiak@thomsonreuters.com))