Bolloré: trend still buoyant in Africa, Oddo says
(CercleFinance.com) - Bolloré yesterday published interim results that exceeded Oddo's expectations.
H1 EBIT came in at 732 million euros, above Oddo's estimate of 680 million euros.
The broker confirms its Buy rating on the share, while trimming its target price to 4.8 euros (against 5 euros).
The broker says that the trend is much better in Africa - both in logistics and ports. Based on these indications, Oddo is largely maintaining its expectations, including organic growth of 1% for Bolloré T&L, with growth in EBIT. with leverage on the basis of past investments (EBIT of 543 million euros, vs. 511 million eurosin 2018).
The group's capacities at African ports will greatly increase over the next three years so as to meet growing demand. Oddo expects a margin of 9.7% in 2021 (against 8.5% in 2018) and a sharp rise in the generation of cash as a result.
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