FDJ: Oddo BHF, neutral, but raises target price
(CercleFinance.com) - On Friday an Oddo BHF analyst confirmed a "neutral" rating on the FDJ share, although has raised its corresponding target price in light of a gradual recovery in business.
After a very good stockmarket performance, the broker can only identify a few short-term catalysts in the context of a gradual recovery in business. This explains why it remains Neutral towards the share, a rating that is justified by the resilient profile guaranteed by FDJ's monopoly in its main markets, combined with high visibility facilitated by the new French regulatory framework (PACTE law).
In addition, the group has a solid financial profile and reports steady growth - it also benefits from strong FCF generation, enabling it to pay a sound return to shareholders, in addition to M&A, the broker says.
Oddo BHF has therefore raised its target price for the share from 21 euros to 26 euros (current price: just under 31 euros, +1%).
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