Savencia: Oddo adjusts target price
(CercleFinance.com) - Oddo has confirmd its buy rating on the Savencia share, although has adjusted its target price to 87 euros (against 93 euros), following the group's publication of its H1 results.
Oddo says that the group should benefit from a favourable comparison basis in H2. The prices of dairy raw materials are expected to stabilize, which bodes well for improvements in profitability.
Oddo believes that the French market remains buoyant for Savencia: sales are up 3% and the group is continuing to win market share. International sales remain dynamic, particularly in Asia (double-digit growth).
In its daily equity review, Oddo says that following this publication, it is reducing its organic sales growth forecast to +2.3%, vs. +4.9% previously after cutting its expected growth in volumes of both businesses in H2. Out of caution, and due to uncertainties around changes in the price of fats and FX factors, the broker has cut its estimate for underlying EBITDA by 7% to 174 million euros (+1% vs. 2017). After an increase in financial costs and extraordinary items over the year, finally Oddo has cut its estimate for net income, group share by 13% to 95.3 million euros.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Oddo says that the group should benefit from a favourable comparison basis in H2. The prices of dairy raw materials are expected to stabilize, which bodes well for improvements in profitability.
Oddo believes that the French market remains buoyant for Savencia: sales are up 3% and the group is continuing to win market share. International sales remain dynamic, particularly in Asia (double-digit growth).
In its daily equity review, Oddo says that following this publication, it is reducing its organic sales growth forecast to +2.3%, vs. +4.9% previously after cutting its expected growth in volumes of both businesses in H2. Out of caution, and due to uncertainties around changes in the price of fats and FX factors, the broker has cut its estimate for underlying EBITDA by 7% to 174 million euros (+1% vs. 2017). After an increase in financial costs and extraordinary items over the year, finally Oddo has cut its estimate for net income, group share by 13% to 95.3 million euros.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.