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Does this French stock have a bright future? Stifel answers

Published 26/06/2024, 13:52
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Investing.com - Stifel paints an optimistic picture of Compagnie de Saint Gobain SA (EPA:SGOB). The bank highlights the company's long-term strategy, marked by targeted disposals and acquisitions, as well as maintaining high margins. Despite short-term challenges, Stifel appreciates the confidence displayed by management and the strategic adjustments implemented in terms of pricing and a recovery in volumes in Europe.

Moreover, according to Stifel, although the political context presents potential risks, the themes of energy transition and high energy costs could turn into favorable opportunities. Saint-Gobain's stock retains its appeal, driven by positive prospects reinforced by economic indicators, interest rates, and the company's internal repositioning efforts.

Based on this, Stifel forecasts strong performance from Saint-Gobain in a recovering economic environment, advising investors to take advantage of possible price declines as buying opportunities.

InvestingPro's models also predict a rise in the stock, which should reach a fair value of EUR 76. However, Saint-Gobain's limited upside potential contrasts with that of other CAC 40 stocks, as shown by InvestingPro's screener.

The screener highlights stocks with the greatest upside potential. Notably, it shows an upside potential of 30% for Orange. The rest of the stocks can be viewed with an InvestingPro+ subscription.

If you are not already a subscriber to InvestingPro, now is right time to become one, as we are offering significant discounts as part of our summer sale! The price of the annual subscription to Pro and Pro+ has been lowered by 35%, and the 2-year subscription by 50%! Additionally, readers of our articles, including you, benefit from an extra special discount of 10%!

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