MS initiates Opmobility with 'overweight', shares rise

Opmobility SE

26/09/2024 10:32

** Shares in Opmobility  OPM.PA  rise 9% after Morgan
Stanley initiates the French plastic processing group with
"overweight", citing the stock's bounce-back potential
    ** It notes the company's shares are trading at 11-year
lows, with the valuation baking in a lot of structural concerns
    ** "Bull case could see shares double," MS says
    ** It says the firm's FCF generation looks attractive and
balance sheet risks controlled, resulting in a compelling
risk/reward skew after a 35% share drop YTD as of Wednesday's
close
    ** "Sentiment could improve due to longer ICE tail, less
China competition in Europe, light vehicle production upgrades
on a soft landing," it adds
    ** It sets PT at 13.40 euros, more than 70% above
Wednesday's closing price of 7.83 euros
    ** Out of nine analysts that cover Opmobility, four rate the
stock "strong buy" or "buy", ​four "hold" and one "sell" - LSEG

 (Reporting by Tiago Brandao)
 ((Tiago.Brandao@thomsonreuters.com;))