TSX drops after Canadian index edges higher in prior session
Investing.com - Kepler Cheuvreux has upgraded Intrum AB (INTRUM:SS) stock rating from Reduce to Hold while simultaneously lowering its price target to SEK46.00 from SEK50.00, representing an 8% reduction.
The upgrade comes despite Intrum missing both Kepler Cheuvreux’s and consensus expectations at the EBITA level during what the research firm described as a seasonally weaker quarter.
Kepler Cheuvreux noted that while its estimates were only slightly reduced following the earnings miss, Intrum’s high leverage magnified the impact on earnings significantly enough to warrant the price target reduction.
The research firm characterized the negative market reaction to Intrum’s results as "overdone," which factored into its decision to upgrade the stock rating despite the lower price target.
Kepler Cheuvreux indicated it is awaiting new financial targets from Intrum, which the company is expected to present with its fourth-quarter report, before considering any more substantial changes to its estimates.
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