Jefferies Lowers Rating on Cancom to 'Hold'

Analyst Outlines Concerns Over Earnings Expectations

Jefferies analyst Oliver Schwarz has downgraded Cancom from a buy to hold rating, citing concerns over the company's earnings expectations. In a research note to clients, Schwarz said that Cancom's recent results have been "disappointing" and that the company faces challenges in meeting its targets for profit and revenue growth. Schwarz also noted that the company's shares are trading at a premium to its peers, which could make it difficult for the stock to outperform the market going forward.

Schwarz's Concerns About Cancom's Earnings

Schwarz outlined several concerns about Cancom's earnings expectations, including:

• The company's recent results have been below expectations, with Cancom missing its targets for revenue and profit growth in the most recent quarter.
• Cancom's guidance for the full year is also below consensus expectations, with the company now expecting lower revenue and profit growth than analysts had originally forecast.
• Cancom faces challenges in meeting its targets for profit and revenue growth, due to factors such as competition from larger rivals and rising costs.

Cancom's Shares Trade at a Premium

In addition to his concerns about Cancom's earnings, Schwarz also noted that the company's shares are trading at a premium to its peers. Cancom's shares are currently trading at around 15 times earnings, while its peers are trading at around 12 times earnings. This premium could make it difficult for Cancom's shares to outperform the market going forward, even if the company meets its earnings targets.

Schwarz's Recommendation

Based on his concerns about Cancom's earnings and valuation, Schwarz has downgraded the company from a buy to hold rating. Schwarz said that he believes that Cancom's shares are fairly valued at current levels and that he does not see significant upside potential for the stock in the near term.