Berenberg ups CFE on prospects for unit DEME, 'the star of the group'

Compagnie dentreprises CFE SA

16/12/2021 08:42

** Berenberg upgrades Ackermans & Van Haaren-owned (AvH)
 ACKB.BR  CFE  CFEB.BR  to "buy" from "hold", as it expects its
largest subsidiary DEME to keep expanding amid high demand for
clean energy capacity and falling costs
    ** The brokerage notes DEME is a pioneer in the fast-growing
offshore wind sector as well as one of the four players that
dominate the global free-dredging market, which it sees as
"attractive"
    ** According to Berenberg, AvH's plan to split CFE into two
separate listed groups will increase transparency and reduce the
complexity associated with its current structure  urn:newsml:reuters.com:*:nL8N2SN1SN 
    ** The announced split "fulfils a long-held hope of
investors," the brokerage notes, adding the transaction should
unlock shareholder value
    ** Berenberg is positive on the current and long-term demand
trends across offshore wind installations and dredging markets
and sees DEME revenue grow 8.7% CAGR in 2021-2024
    ** On five analysts covering CFE stock, which gained around
29% year-to-date, two rate it "strong buy", two rate it "buy"
and one rates it "hold"

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))