Sinch's sentiment tarnished, Berenberg cuts to 'hold'

Sinch AB (publ)

26/07/2022 08:15

** Recent rollercoaster of events at Sinch  SINCH.ST  has,
according to Berenberg, damaged investors' sentiment, prompting
the brokerage to cut rating on the stock to "hold" from "buy"
    ** The events Berenberg refers to are short report by a
Ningi Research, a resignation of Sinch CEO, a restatement of
historical cost of goods sold (COGS) as well as a weaker than
expected Q2 report  urn:newsml:reuters.com:*:nL8N2YT3IA
    ** Although the brokerage continues to like Sinch's
positioning in a large, structurally growing market, it
currently doesn't see clear re-rating catalysts in the near term
    ** Berenberg also adds that an independent audit review
could be a positive first step in restoring the sentiment
    ** Shares of the Swedish cloud communication services
company have lost about 30% since publication of the short
report on July 11  urn:newsml:reuters.com:*:nL8N2YS372, including additional hit last
week from the CEO departure and Q2 report  urn:newsml:reuters.com:*:nL8N2Z21ZR
    ** Berenberg's new TP on the stock, which traded at SEK 115
at the beginning of the year, is SEK 30.00 (previously SEK 100)
    ** At 0715 GMT, Sinch stock is down nearly 2%
    

 (Reporting by Marie Mannes)
 ((Marie.mannes@thomsonreuters.com))