SocGen cuts IMI price target but remains positive on stock

7th May 2015 15:13

Societe Generale reduced its price target on IMI to 1450p from1550p Thursday to factor in an earnings cut following the company's first quarter results.The bank downgraded its 2015 and 2016 EPS estimates to 74.5p from 81.1p and 84.6p from 92p, respectively, to reflect the first quarter trends, revised management guidance and new detail on additional first half costs.Still, the broker maintained its 'buy' recommendation on the stock, noting that the earnings downgrades are already discounted to some extent in the share price, as it has underperformed the sector by 15% in last three months."We remain resolutely positive on the upside from the strategic plan, which continues to move forward, and see potential for stabilisation in core markets such as liquefied natural gas given the recent upward move in the oil price."