Eramet: Oddo raises target price

(CercleFinance.com) - Oddo BHF reiterates its "outperform" rating on Eramet shares, increasing its corresponding target price from 75 euros to 86 euros, noting that the mining and metals group's share is curently trading at a 2022 EV/EBITDA of 2.
8x (compared to a 10-year average of 5.6x).

Analysts believe that Eramet's financial and operational situation has stabilised and that the commitment of stakeholders (SLN, Aubert & Duval) should materialise, while the fundamentals of nickel and manganese remain strong.

Having increased its expectations for manganese alloys, Oddo BHF now expects EBITDA of 805 million euros in 2021, followed by 975 million euros in 2022 and 1.1 billion euros in 2023, believing that Eramet will generate positive FCF in 2021.


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