UBS cuts SGS rating<\/p>\n
ZURICH (Reuter): Union Bank of Switzerland said it cut its
\nrecommendation for shares of inspections company Ste Generale de
\nSurveillance to "sell" from "hold" on expectations the company
\nhad lost contracts with Indonesia and Pakistan.<\/p>\n
"We believe that the price does not sufficiently reflect the
\nworsened outlook for earnings and revise the stock from hold to
\nsell," it said in a research report.<\/p>\n
It said it did not expect SGS to be able to conclude a new
\nimports inspection contract with Indonesia, which UBS said
\naccounted for some 10 percent of sales.<\/p>\n
A contract with Pakistan worth an estimated 87 million Swiss
\nfrancs also seemed lost.<\/p>\n
"On the basis of sales that will drop away, we expect profit
\nto fall around eight percent in 1997 and to rise only around six
\npercent in 1998," it said. "Surveillance should regain its
\ncustomary growth level only in 1999."<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ubs-cuts-sgs-rating-1447893297",
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"sponsor": "Okusi Associates",
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