J.P. Morgan Initiates General Cable Coverage With A Neutral Rating, $38 PT
December 16, 2010 10:13 AM
J.P. Morgan has initiated coverage on General Cable (NYSE: BGC) with a Neutral rating and a $38 December 2011 price target.
“We expect General Cable to benefit from growing emerging market demand, driven by rising electricity needs,” J.P. Morgan writes. “We also believe electric transmission demand in Europe and North America should grow modestly, driven by renewable energy projects and eventually electric grid interconnection projects.”
J.P. Morgan notes, however, that it expects overall growth may be muted by cable industry over-supply, leading to continued unfavorable pricing and also by depressed construction demand in Europe.
“Even though cable industry demand appears to be improving, we do not see a strong potential for better-than-expected results or multiple expansion,” J.P. Morgan concludes.
General Cable closed Wednesday at $35.00.
