Business
Jefferies readjusts European cable players, names NKT top pick
Jefferies readjusts European cable players, names NKT top pick
About this update from Prysmian S.p.a.
** Jefferies adjusts ratings for European cable manufacturers to account for longer term prospects, saying "very strong trends" in Q3 should drive an acceleration in near term growth for all players** "We believe the near term strength is increasingly priced in and investors are turning to 2026e and beyond," says the broker** Jefferies' top pick is NKT OMXCOP:NKT, which it upgrades to "buy" from "hold", expecting the Danish company to move past key risks and deliver the sector's fastest earnings growth and leading margins by 2028** It downgrades France-based Nexans EURONEXT:NEX to "hold" from "buy" citing lower visibility for the coming years** It also flags risks related to Nexans' Great Sea Interconnector project, saying potential delays could put 75-100 million euros ($88-117 million) of annual EBITDA in jeopardy** Jefferies maintains "buy" on Italy's Prysmian MIL:PRY, noting its outstanding execution and exposure to U.S. data centre growth($1 = 0.8555 euros)