What happened to the Seven Group Share Price?
Shares of Seven Group Holdings Ltd [ASX:SVW] soared more than 14% today as the company received a major buy recommendation upgrade from influential investment firm, Goldman Sachs.
Why did SVW shares rise?
The Seven Group Holdings Ltd invests in the Seven Network, publishing businesses, and in a heavy equipment dealer that operates Caterpillar dealerships.
The share price popped higher as a Goldman Sachs analyst placed a buy recommendation and price target on the stock of $8.51. That was above the previous day’s closed price of $7.80.
According to the analysis, with commodity prices rebounding in recent months, mining companies will be more likely to increase investment in exploration and production. That would therefore be a boon for the Seven Group’s resources related businesses.
What now for Seven Group Holdings Ltd?
The Goldman Sachs price target was $8.51. After the release of Goldman Sachs’ report, the stock soared to trade and close 42 cents above the price target. It’s unlikely that Goldman Sachs will change its recommendation so soon after upgrading it, but once the euphoria seeps out of today’s price rise, it’s likely the stock will slip lower tomorrow.