Bekaert: Shares jump on surprising EBIT guidance

NV Bekaert SA

20/11/2020 08:31

** Shares in Belgium's steel wire maker Bekaert  BEKB.BR 
rise around 11.5% after the company unexpectedly announced it
foresees underlying EBIT for FY 2020 to be close to 2019
levels urn:newsml:reuters.com:*:nFWN2I516I
    ** Despite the overall drop in 9-month sales (14%
year-on-year), due to the heavy impact of the COVID-19 pandemic,
the group expects a step-up in performance in H2 thanks to the
recovery of demand in most of its markets
    ** KBC says the guidance is a positive surprise and a clear
sign that "the restructuring and portfolio upgrading efforts are
gaining pace"
    ** The broker raises its rating to "accumulate" from "hold"
and will upgrade its forecasts
    ** Up to the previous session's close, shares were down 19%​
YTD.

 ((Federica.mileo@thomsonreuters.com))