UBS ups Plastic Omnium, says risks from business shift reflected in shares

Opmobility SE

05/12/2023 10:43

** UBS upgrades Plastic Ommium  PLOF.PA  to "neutral" from
"sell", saying risks attached to the French plastic processing
group's business transformation are now reflected in the share
price
    ** The broker says the stock reflects a more balanced
risk-reward profile, even if it still holds a prudent stance on
the group's shift
    ** The transformation plan includes cash generative segments
partially funding and potentially replacing current low-profit
or loss-making new business lines, it says
    ** UBS adds new business lines will need to prove
themselves, as it is more prudent on acquired businesses related
to batteries, electrification and hydrogen – "a crowded and
relatively unexplored territory for the group"
    ** Among the 10 broker covering the stock, three rate it
"strong buy" or "buy" and seven "hold" - LSEG

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))