Street Calls of the Week
Investing.com - Kepler Cheuvreux has lowered its price target on SIG Group AG (SIX:SIGN) (OTC:SCBGF) to CHF9.00 from CHF17.50 while maintaining a Hold rating on the stock.
The price target reduction follows a recent profit warning from the company, with Kepler Cheuvreux noting that the magnitude of demand deceleration remains "underexplained" despite previous positive statements on filler demand.
The research firm acknowledged positive signs that the new external chairman has been empowered to pursue corrective measures and cultural transformation, and appears to be moving quickly on these initiatives.
Kepler Cheuvreux highlighted several ongoing concerns including high debt, the absence of a new CEO, and pending legal issues, suggesting it is "too early to become more optimistic" about the company’s outlook.
The firm expects a potential dividend pause paired with capital expenditure restraint, noting this would end "the compounder and dividend grower case for now," and indicated it would await the arrival of a "bankable senior CEO" before taking a more constructive view on the stock.
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