Xilam: rebound continues after good first-half results

(CercleFinance.com) - Xilam continued its recovery on the stock market on Tuesday, following the publication of half-year results which, according to analysts, showed a "respectable landing" given the current context.


After publishing half-year sales of 11.6 million euros a few weeks ago, down 36%, the animation studio unveiled first-half results in line with expectations on Monday evening.

Its current operating income showed a loss of 1.3 million euros, compared with a profit of 2.2 million in the first half of 2023, impacted both by the contraction of its production and the asymmetrical level of catalog activity in the first half.

In a reaction note, the analysts at TP ICAP Midcap - who have a "hold" recommendation and a target price of 4.4 euros for the stock - describe this as a "respectable landing" in view of the environment.

"The ambition to aim for operating income before non-recurring items close to breakeven is given credibility by the first-half performance", the brokerage believes.

The Group - which is seeking to rebuild its order book while implementing a cost-cutting plan - has reiterated its forecast of operating income before non-recurring items close to breakeven in 2024, anticipating a better second half, particularly in terms of catalog sales.

Following this publication, Euroland's analysts have renewed their 'neutral' opinion, with a price target of eight euros.

The Group's current production situation is, in the medium/long term, very reassuring for the investment case, but the deterioration in fundamentals continues to weigh on a shorter-term perspective", they believe.

Following this publication, Xilam shares were up 5% on Tuesday morning, bringing their rebound since their August low to almost 33%.

The stock is now up over 25% this year, buoyed in particular by the prospect of upcoming series on Netflix and Disney+.

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