Credit Suisse Starts CGG (CGG) at Underperform

September 19, 2016 7:22 AM EDT
Get Alerts CGG Hot Sheet
Price: $10.81 -2.7%

Rating Summary:
    3 Buy, 7 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Credit Suisse initiates coverage on CGG (NYSE: CGG) with a Underperform rating and EUR17.50 price target.

Analyst Gregory Brown commented, "The transformation of CGG has continued exponentially. Gone are the asset-heavy days of a seismic player looking to dominate the acquisition market with north of 20 vessels. Today, CGG is an asset-lighter mix of GGR (a cash-generative and profitable multiclient and processing business), Sercel (the market-leading, but currently loss-making, equipment franchise) and a much downsized marine contract business. We applaud the gravitation towards higher-quality franchises, but we acknowledge CGG’s stretched balance sheet. We are also concerned about a dwindling client base for Sercel and a possible strategic misstep in Mexico by not targeting early 2D work."

For an analyst ratings summary and ratings history on CGG click here. For more ratings news on CGG click here.

Shares of CGG closed at $24.12 yesterday.

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