Investment bank downgrades Mouchel stock from buy to hold in reponse to downbeat trading statemenet
Shares in troubled support services group Mouchel fell almost 1% in afternoon trade after an investment bank dowgraded its stock from buy to hold in response to last month鈥檚 gloomy trading statement.
Real-time Share PriceEspirito Santo Investment Bank said Mouchel鈥檚 trading statement made clear there would be continued 鈥渟ustained pressure in consulting鈥� and against that backdrop the bank decided to make a material cut to its 鈥�12 EPS forecast by 26 per cent to 9.3p.
The bank added that it 鈥渟ees upside potential鈥� if Mouchel can deliver on its 拢30m debt repayment deadline, but added 鈥渢he path to recovery in demand is clearly likely to be more protracted than we previously envisaged鈥�.
Mouchel must raise the 拢30m it needs to repay debt in the next year.
Last month鈥檚 trading statement sent Mouchel shares tumbling 12 per cent to a year low of 59.7p. The shares were trading at 57p in late afternoon trading today (WEDNESDAY).
Mouchel was criticized when it revealed it had rejected a series of takeover approaches.
The company rejected a 151p indicative offer from Costain and spurned advances from Interserve which cut its bid to 135p after conducting due diligence.
Mouchel also parted company with finance director David Tilston after less than a year in the job.
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