Manitou: SocGen cuts to "hold" due to COVID-19 impact
20/04/2020 07:56
** Societe Generale downgrades French holding Manitou
MANP.PA to "hold" from "buy" and slashes target price by 41%
to EUR 13.7 due to COVID-19 impact on its estimates
** The brokerage says it has lowered its estimates taking
into account the shutdown of the main production sites in late
Q1 and through part of Q2
** It now expects 2020 sales to fall 24% to EUR 1.59 bln
($1.73 bln), with the operating margin dropping from 8.0% to
4.4%
** The expected rise in net debt also weighs on its
valuation, SocGen adds
** Beyond 2020, it is still hard to gauge the COVID-19
crisis' impact on Manitou's orders, the broker writes
** However, it says it remains confident on Manitou's
ability to navigate the crisis successfully
($1 = 0.9214 euros)
((marta.frackowiak@thomsonreuters.com))