On Tuesday, Morgan Stanley reaffirmed its Overweight rating on Getlink (GET:FP) (OTC: GRPTF), with a steady price target of EUR20.50. The firm's analysis highlighted Getlink's advancements towards its mid-term goals, particularly with the High-Speed Rail (HSR) and new market entrants, as well as the reduction of risks for its ElecLink project profits extending into 2026. However, there remains a lack of clear short-term forecasts for volume, pricing, and market share movements for Le Shuttle services.
The analyst from Morgan Stanley noted that Getlink has shown commendable performance in the first half of the year. Despite the current uncertainties, the firm anticipates that Getlink will make further progress in the second half of the year, which supports the decision to maintain the Overweight rating.
Getlink operates the Channel Tunnel between the United Kingdom and France and offers shuttle services, known as Le Shuttle, for vehicles and freight. The company also manages railway network operations and has been working on the ElecLink project, which aims to provide electricity interconnection between the two countries.
The Overweight rating suggests that Morgan Stanley believes Getlink's stock will outperform the average total return of the stocks covered by the analyst in the industry over the next 12 to 18 months. The EUR20.50 price target is based on the firm's expectations of the company's future earnings and cash flow.
Investors and stakeholders in Getlink will likely monitor the company's performance closely in the coming months, particularly in relation to the challenges and opportunities outlined by Morgan Stanley. The firm's reiteration of the Overweight rating indicates confidence in Getlink's potential despite the noted short-term uncertainties.
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