–
The troubled construction and dredging group CFE was restored after a purchase recommendation from ABN Amro. Under Galapagos the bottom seemed lost.
–
The Brussels stock exchange had a tame day. Not a single company came up with half-yearly figures. In the absence of catalysts, prices remain flat and below average volumes. The Bel20
performed worse than the European average (-0.3%) with a loss of 1 percent to 3,302 points.
–
Galapagos
thrashed the gauge again. The Mechelen biotech company was able to rebound slightly on Thursday after Wednesday’s dramatic price drop. The sell button was pushed again on Friday after a hefty price target decrease by UBS as a result of the setback on Wednesday when the promising rheumatism filgotinib in addition to a US license grip.
–
If Abbvie’s competing drug gets licensed faster than filgotinib in the US, turbulent times will follow.
Laura Sutcliffe
Analiste UBS
–
–
–
“Filgotinib will go through troubled waters if it is licensed later than Abbvie’s competing drug Rinvoq,” said analyst Laura Sutcliffe. UBS lowers the target price from 200 to 130 euros and uses a holding advice.
–
Galapagos fell 3.8 percent to 117.3 euros.
–
Broad market
In the broad market CFE
for spectacle. The troubled construction and dredging group has been fished up after a lousy stock market course since April. A purchase advice from ABN Amro is firmly followed.
–
Analyst Thijs Berkelder is going from ‘holding’ to ‘buying’ and raises the target price from 80 to 85 euros, good for an upside potential of 50 percent.
–
In March, the exchange rate had fallen sharply to EUR 51.6, before recovering strongly to EUR 75 in April. In recent months, the share fell again below 55 euros. ‘In my view, the latter decline is difficult to explain,’ says analyst Thijs Berkelder. ‘All the more because CFE and subsidiary DEME have most of their offshore wind, dredging and construction projects under good control.’
–
For CFE, the purchase advice is a welcome boost after a disastrous six months. The construction activity was hit amidships by the lockdown, the dredging activity due to travel restrictions for highly specialized personnel and the increasingly mature market for offshore wind farms due to price pressure. As if that were not enough, CFE also got a serious crane accident at a shipyard in Rostock, Germany. As a result, the delivery of the offshore installation vessel Orion (for CFE’s full dredging subsidiary DEME) is seriously delayed.
–
These are turbulent times for the engineering group that is struggling with a relatively high mountain of debt and is therefore extra vulnerable in the midst of the global pandemic. But all those setbacks are in the race, according to ABN Amro. CFE has an annual loss of 40 percent, twice as much as the proven dredging competitor Boskalis.
–
Which Boskalis Thursday surprised the market with a resilient report that gave extra momentum.
–
CFE rose by 9.2 percent to 59.5 euros, thus having its best trading day in at least a decade.
–
–
