On Thursday, Barclays (LON:BARC) adjusted its stance on Getlink (GET:FP) (OTC: GRPTF), the operator of the Channel Tunnel, by raising its stock rating from Equalweight to Overweight and increasing the price target to €20.00, up from the previous €15.00.
The firm highlighted that Getlink is poised for an attractive recovery, citing the potential end of a cycle of negative earnings revisions.
The upgrade comes as Getlink is expected to benefit from a resurgence in traffic and the value of strategic initiatives. Barclays underscored the inclusion of high-speed services and the second ElecLink as key drivers for the revised price target. These elements are anticipated to contribute to the company's growth prospects.
The analyst from Barclays expressed optimism about Getlink's future, noting the possibility of an earlier than expected recovery and the impact of lower interest rates. These factors could provide additional upside risks to the company's valuation, beyond the raised price target.
This positive outlook suggests that Barclays sees a robust pathway for Getlink to enhance its financial performance. The upgrade to Overweight signifies a recommendation that investors should weigh the company's shares more heavily in their portfolios.
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