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Investing.com - Berenberg downgraded Gaztransport & Technigaz (EPA:GTT) from Buy to Hold while maintaining its price target of EUR180.00.
The research firm cited GTT ’s impressive year-to-date performance, with shares rising more than 30%, driven by momentum in new liquified natural gas (LNG) developments, expanding margins, and strong earnings visibility.
Despite remaining convinced of GTT’s solid underlying performance, Berenberg now sees the risk/reward profile as more balanced, noting potential delays to orders in the second half of the year due to shipowner hesitation amid current macroeconomic uncertainties.
The downgrade also reflects Berenberg’s view that GTT’s margins could be peaking as the company’s non-core business ramps up following the Danelec acquisition.
Berenberg observed that GTT shares currently trade broadly in line with long-term averages for EV/EBITDA and dividend yield, supporting its decision to maintain the EUR180 price target while lowering the rating.
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