On Friday, AlphaValue lowered its recommendation on Eramet shares to 'lighten up' from 'accumulate', with a price target reduced from 76.5 to 68.9 euros.

In a note issued at midday, the research firm explains that the mining group's valuation will necessarily be affected by geopolitical risk.

While acknowledging that the situation could change rapidly in either direction, AlphaValue considers its change of target to be moderate for the time being, wishing to give the company the "benefit of the doubt". the company the 'benefit of the doubt' in view of the uncertainties still surrounding Gabon's future and the evolution of its relations with the French group.

However, the independent firm points out that these troubles are occurring in an already delicate context for Eramet, faced with a downturn in raw material prices in all its businesses.This had already led AlphaValue to lower its price target in early August.

Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.