flatexDEGIRO: Oddo still a buyer
(CercleFinance.com) - Oddo confirms its "outperform" rating on flatexDEGIRO shares, while reducing its target price for the stock from 30 euros to 16 euros.
Yesterday, flatexDEGIRO announced a reduction in its 2022 guidance: the online broker now expects between between 75m and 85m transactions (vs. 95m-115m previously, and 90m for the consensus) as well as 600-700 thousand new users (vs. 640-840 k previously expected and the consensus of 601 k), Oddo says.
According to Oddo, the reduction in its sales guidance is mainly a result consequence of a lower-than-expected number of transactions per user, as investors are taking a wait-and-see attitude in the face of uncertainties (inflation, recession fears, Ukraine-Russia war, lockdowns in China, etc.).
Against this backdrop, flatexDEGIRO now expects sales of 400 to 440 million euros, while the pre-release consensus was looking for 476 million euros, and Oddo is targeting 405 million euros.
Oddo therefore said that it expects 2023/2024 EPS of E0.86 and E1.23 respectively, representing an average reduction of 23% over the period (-28% and -19% respectively for 2022 and 2023).
The broker nevertheless maintains its "outperform" rating on the stock, considering that a very pessimistic scenario had already been incorporated into the group's valuation, after the share price fell by over 23% in one month.
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