Barclays has upgraded Italian heating appliance maker Ariston Group to Equal Weight from Underweight, driven by a roughly 9% decline in the company’s share price since mid-May.
The bank raised its price target to €3.30 from €3.10. "With no downside to our new PT of €3.3, we upgrade the stock to EW," analyst Rajesh Patki said.
Ariston shares are down around 25% year-to-date.
Barclays remains cautious on fundamentals, citing unsupportive end-markets and margin concerns. M&A is expected to be earnings-dilutive.
The bank sets an upside scenario of €4.80 per share and a downside case of €2.70.
