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

By Reuters News

** 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

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.