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Investing.com - RBC Capital initiated coverage on OMV AG (VIE:OMV) (OTC:OMVKY) with a Sector Perform rating and a price target of EUR50.00 on Thursday. According to InvestingPro data, the company currently trades at a P/E ratio of 18.75 and has shown strong financial health with liquid assets exceeding short-term obligations.
The research firm acknowledged OMV’s strategic decision to consolidate its shareholdings into a single entity called Borouge Group International (BGI), describing it as a move toward creating a more resilient business amid an extended downturn in the chemicals sector.
RBC Capital noted that BGI brings scale, simplification, and near-term earnings improvement to OMV, while its floor dividend structure should enable OMV to upgrade its dividend payout policy at the company’s upcoming Capital Markets Day on October 6.
Despite these positive factors, the research firm indicated that consensus expectations for OMV have already moved higher, and the stock has significantly outperformed year-to-date.
RBC Capital concluded that potential upside for OMV is already reflected in the current share price, making the Sector Perform rating appropriate as the firm completes its coverage of the Integrated Energy sector.
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