Deutsche Bank has adjusted its stance on SIG Plc (SHI: LN), a leading supplier of specialist building materials, by reducing its price target on the company's shares.
The new target has been set at GBp18, down from the previous GBp21, while the firm continues to recommend a Sell rating on the stock.
SIG Plc's share price has experienced a significant decline, falling nearly 30% since May 10, a steeper drop than the broader FTSE All Share Index, which saw a decrease of 1% in the same period.
The performance has led Deutsche Bank to reassess the potential challenges facing the company, including the likelihood of further downgrades and the implications of SIG's forthcoming refinancing efforts.
The analyst from Deutsche Bank highlighted that the valuation now seems to better reflect these risks. However, they also noted that with the anticipated macroeconomic recovery being delayed, there are still considerable downside risks that could affect the stock's performance. One such concern is the ongoing speculation regarding a possible equity raise by SIG Plc, which could have further implications for shareholders.
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