RHI Magnesita slumps on RBC Capital downgrade
RHI Magnesita tumbled on Wednesday after RBC Capital Markets downgraded the shares to ‘sector perform’ from ‘outperform’ and cut the price target to 3,700p from 4,750p.
RBC said RHIM remains one of the cheapest stocks in its coverage and it continues to see attractions in its valuation.
"However, with inflationary pressures likely to persist in H2 and into H1 2022 we see increased uncertainty in its earnings progression versus our coverage and therefore downgrade."
At 0850 BST, the shares were down 6.6% at 2,968p.