Komax: Shares slump on UBS downgrade
21/01/2020 10:29
** Shares in Komax Holding KOMN.S slump 11% after UBS cuts
to "sell" from "buy", on track for worst day in 10 months
** The broker says the company could be facing a
slower-than-expected sales recovery and ongoing poor product mix
due to lack of recovery in automotive capex this year
** "We believe it will take at least three years for EBIT
margins to recover to the 13-14% range generated over 2013-18",
it adds
** UBS expects the company to considerably miss its mid-term
2021 earnings target; cuts EPS estimates by -28% for FY 2020 and
by -17% for FY 2021
** The broker says it believes that stock prices in a "too
much and too fast earnings recovery"
((Linda.pasquini@tr.com))