Report
Eric Lemarie

Saint Gobain: Downgraded on the back of uncertainties and lack of positive catalysts

Saint Gobain: (NEUTRAL vs. BUY, Fair Value EUR47 vs. EUR53 (+24%))
Downgraded on the back of uncertainties and lack of positive catalysts
Despite a poor performance this year, especially in Q2, we struggle to find strong reasons to maintain our positive rating on the stock today. We acknowledge that the valuation is not demanding, but the share price will have to deal with 1) difficult momentum (flat glass margin in H1, Brazil strike); 2) some uncertainties in the residential segment in France and 3) Emerging markets outlook on the back of the trade war. We adjust our (previously too optimistic) estimates and our Fair Value.
Underlyings
Compagnie de Saint-Gobain SA

Compagnie de Saint-Gobain manufactures, produces, and distributes industrial materials. Co.'s activities are divided into four sectors: Innovative Materials (Co. makes, processes and sells glass and glazing products for the building, the automotive and solar energy industries; Co. also manufactures Ceramics and Plastics, Abrasives, and Textiles), Construction Products (Co. offers products for the Insulation, Gypsum, Exterior Products, Pipe and Industrial Mortars), Building Distribution (Co. distributes building materials (plumbing, heating and sanitaryware products) and ceramic tiles), and Packaging - Verallia (Co. manufactures glass containers and jars for foodstuffs and beverages).

Provider
Bryan Garnier
Bryan Garnier

Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.

Analysts
Eric Lemarie

Other Reports on these Companies
Other Reports from Bryan Garnier

ResearchPool Subscriptions

Get the most out of your insights

Get in touch