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’s gloomy trading statement.
Real-time Share PriceEspirito Santo Investment Bank said Mouchel’s trading statement made clear there would be continued “sustained pressure in consulting” and against that backdrop the bank decided to make a material cut to its ’12 EPS forecast by 26 per cent to 9.3p.
The bank added that it “sees upside potential” if Mouchel can deliver on its £30m debt repayment deadline, but added “the path to recovery in demand is clearly likely to be more protracted than we previously envisaged”.
Mouchel must raise the £30m it needs to repay debt in the next year.
Last month’s 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.