Dormakaba: share down after H1 results
(CercleFinance.com) - The stock of security and access solutions group Domakaba is down over 1% on the Zurich Stock Exchange today after the group published its H1 2018/19 results.
Following this publication, Oddo maintains its Neutral rating on the stock, with a target price of 682 Swiss francs.
Analysts point out that organic growth reached only 2.1% in the first half of 2018/19, compared to 2.7% expected by the consensus and 2.6% forecast by Oddo, with the group mainly impacted by its AMER division, and more specifically the hotel segment. In contrast, the group's EBITDA margin increased by 90 bp to 16%, in particular driven by efforts to streamline businesses as part of the merger of dorma and Kaba.
Oddo has slightly cut its estimates (expecting EPS to fall by 1.6%), which now include organic growth of 2.4% for 2018/19 (against 2.6% previously). It should be noted that this implies an acceleration of growth in the second half, with the group having reported 2.1% organic growth in H1, which may seem ambitious in view of the gradual deterioration of leading indicators, the broker said.
In its daily equity round-up, Oddo says that it cannot rule out that 2018/19 will fall short of growth targets. The stock is trading at a very slight premium relative to the capital goods sector, in terms of 2020 EV/EBIT and P/E multiples. Oddo adds that the share is also trading at a discount of 15% relative to Assa.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Following this publication, Oddo maintains its Neutral rating on the stock, with a target price of 682 Swiss francs.
Analysts point out that organic growth reached only 2.1% in the first half of 2018/19, compared to 2.7% expected by the consensus and 2.6% forecast by Oddo, with the group mainly impacted by its AMER division, and more specifically the hotel segment. In contrast, the group's EBITDA margin increased by 90 bp to 16%, in particular driven by efforts to streamline businesses as part of the merger of dorma and Kaba.
Oddo has slightly cut its estimates (expecting EPS to fall by 1.6%), which now include organic growth of 2.4% for 2018/19 (against 2.6% previously). It should be noted that this implies an acceleration of growth in the second half, with the group having reported 2.1% organic growth in H1, which may seem ambitious in view of the gradual deterioration of leading indicators, the broker said.
In its daily equity round-up, Oddo says that it cannot rule out that 2018/19 will fall short of growth targets. The stock is trading at a very slight premium relative to the capital goods sector, in terms of 2020 EV/EBIT and P/E multiples. Oddo adds that the share is also trading at a discount of 15% relative to Assa.
Copyright (c) 2019 CercleFinance.com. All rights reserved.