Stifel downgrades its recommendation on SGS from 'hold' to 'sell', with a price target reduced from 80 to 66 Swiss francs, in a sector note on European inspection and certification services groups.

The broker cuts its projections for the Swiss group by 2-6% over the next three years, to around 5% below consensus, reflecting a more difficult context in consumer end-markets and negative currency effects.

Stifel expects average annual adjusted EPS growth of only around 2% over 2022-25 for SGS, continually underperforming its peers, and considers its perception of a defensive growth profile to be 'overestimated'.

Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.