GVS drops after GS cuts stock to 'sell' on high leverage, lower forecasts

GVS

28/06/2023 08:22

** Shares in Italy's GVS  GVS.MI  fall as much as 10% after
Goldman Sachs downgrades the filter maker to "sell" from
"neutral"
    ** The broker cites higher-than-average leverage and lower
forecasts on sales and core earnings for 2023-2024
    ** "While the group's long-term earnings growth potential is
attractive, we see risks that softening demand within the Sports
& Utility segment and customer destocking within Healthcare
continue beyond 1Q23," GS says
    ** It cuts its estimates on 2023 and 2024 sales by 1% and 2%
and EBITDA by 4% and 7%, respectively
    ** The broker also lowers GVS's target price to 4.70 euros
($5.14) from 4.80 euros

($1 = 0.9138 euros)

 (Reporting by Alessandro Parodi)
 ((alessandro.parodi@thomsonreuters.com))