Eramet is down nearly 2% in Paris as AlphaValue lowered its recommendation on the stock on Friday, from 'accumulate' to 'lighten up', with a target price reduced from 76.5 to 68.9 euros.

In a note issued 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" 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 come at a time when Eramet is already facing a difficult environment, with falling commodity prices in all its businesses, which had already led AlphaValue to lower its target price in early August.

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