Kepler cuts Getlink as higher bond yields delay potential M&A

** Kepler Chevreux downgrades Channel Tunnel operator Getlink GETP.PA to "hold" from "buy" as rising bond yields and geopolitical uncertainties delay potential M&A bids

** A deteriorating environment pushes any hypothetical move "much deeper into the future", the broker says, pointing out Eiffage (29.4%) and Mundys (25%) holding large stakes in the company

** The brokerage says a fully open leveraged buyout market and lower interest rates are needed to finance a takeover, which it does not expect over its 12-month time horizon

** Kepler raises its 2027-2030 EPS forecasts by 8% on average reflecting a more dynamic operating environment, which is however offset by higher equity costs

** The brokerage raises its cost of equity estimate to 9% following a sharp increase in French bond yields, which significantly restricts the stock's upside potential

** Kepler cuts PT by 8% to €19.75

** Out of 16 analysts, seven rate Getlink "strong buy" or "buy," ​seven "hold" and two​ "strong sell" or "sell" -- LSEG data