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Tuesday, Kepler Cheuvreux adjusted its stance on Rubis (EPA:RUBF) SCA (RUI:FP) (OTC: RBSFY), lowering the stock rating from Buy to Hold and setting a new price target at €28.00, a decrease from the previous €29.00. The revision follows an update to their financial model, which now incorporates the fiscal year 2024 figures that align with the company’s projections and adjusts to the new fiscal year 2025 guidance, which falls short of their earlier predictions. According to InvestingPro data, Rubis currently trades at an attractive P/E ratio of 7.89 and has demonstrated strong performance with an 18% year-to-date return.
The analysts at Kepler Cheuvreux cited a subdued outlook for the change in the price target, noting that the potential for stock price appreciation now stands at less than 10%. This limited upside potential prompted the shift in the stock’s rating from Buy to Hold, reflecting a more conservative expectation for Rubis’s near-term performance. However, InvestingPro analysis indicates the company maintains strong financial health with a "GREAT" overall score, supported by robust cash flow and profitability metrics. Subscribers can access 10 additional ProTips and detailed financial analysis.
In their comments, the analysts stated, "We have updated our model to integrate the FY 2024 figures (in line with our previous model) and align with the new FY 2025 guidance (below our previous model). Due to the subdued outlook, we adjust our target price from EUR29 to EUR28."
The downgrade signifies a recalibration of expectations for Rubis, as Kepler Cheuvreux’s analysts adjust their stance based on the company’s guidance and their own financial analysis. The new target price of €28.00 represents a modest adjustment but indicates that the analysts see limited room for the stock to grow in value in the immediate future.
Rubis SCA, which is listed on the Euronext (EPA:ENX) Paris stock exchange under the ticker RUI:FP and also trades over-the-counter in the United States as RBSFY, will continue to be monitored by investors and analysts alike as the market processes this updated assessment from Kepler Cheuvreux. The company, with a market capitalization of $2.9 billion, has maintained dividend payments for 32 consecutive years and currently shows signs of being slightly undervalued according to InvestingPro Fair Value analysis.
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