Goldman Sachs cuts Nexans to 'neutral' on low backlog visibility
19/08/2024 09:59
** Shares in Nexans NEXS.PA fall 3.8% after Goldman Sachs
downgrades the French cable maker to "neutral" from "buy" citing
concerns around its backlog visibility
** In a note on cables stocks, GS says it remains "very
constructive" about demand for cables, but is cautious on how
the companies will utilise their capacity amid expansion
** In the past, capacity under-utilisation has put severe
pressure on high voltage margins, it notes
** It confirms "buy" rating for Prysmian PRY.MI and raises
PT by 4.3% to 73 euros, saying its backlog already fills most of
its capacity until 2028, shielding it from risk of over-supply
** Meanwhile, more than half of Nexans' 2027/28 capacity is
unfilled, the broker says, though it hikes its 12-month PT by
2.6% to 117 euros
** It maintains "sell" on NKT NKO.CO citing the highest
exposure to the high voltage segment in its cable coverage
(Reporting by Charlotte Bawol)
((Charlotte.bawol@thomsonreuters.com))