Berenberg analysts maintain their buy recommendation on Ezentis shares
- The German firm sets a target price of 0.45 euros per share.
- Ezentis' activity will be "resilient" as it provides an essential service, he believes
The international stock market research firm Berenberg, which began coverage of Ezentis more than a year ago, recommends buying shares in the company in its latest report and gives a target price for the share of 0.45 euros.
The German firm has drafted its analysis in the midst of the Covid-19 crisis, and it rates Ezentis' activity -deployment, operation and maintenance of telecommunications and energy infrastructures- very positively, considering it an essential service, as confirmed by the Spanish government and the rest of the countries where the company operates. "Ezentis' operations will be very resilient during the current crisis," the report says. Berenberg highlights Ezentis' position as "one of the few key players providing these essential services".
"Most of Ezentis' operations should not be affected by the current closure measures, as the maintenance of telecommunications and energy infrastructure is a critical service, as recently confirmed by a Royal Decree of the Spanish government". The analysts add in their report that as a result, "the margin should be resilient and remain stable".
"Our Buy rating has not changed to reflect the company's resilience and defensiveness as a provider of operation and maintenance of critical infrastructure assets," Berenberg concludes in its report.