LVMH: Oddo confirms buy rating
(CercleFinance.com) - Tiffany reported its Q1 results on Tuesday.
Oddo says that while they were below expectations at the bottom line, the figures did not seem so surprising in the current context.
Following this announcement, Oddo confirms its buy rating on the LVMH share, along with its target price of 352 euros.
Tiffany renegotiated covenants on its debt on 8 June (the day before it published its results) and now has, its management says, sufficient leeway to continue to respect them in the future, Oddo says.
The broker says that recent press comments suggested that a failure to comply with these covenants could have led to a review of the planned merger by LVMH.
However, Oddo believes that an acquisition by LVMH remains the most likely scenario. It cannot see any details in this publication that would lead it to believe that LVMH would have more reasons to question the acquisition if it wanted to; Oddo still belives that this is the most likely scenario.
Copyright (c) 2020 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.
Oddo says that while they were below expectations at the bottom line, the figures did not seem so surprising in the current context.
Following this announcement, Oddo confirms its buy rating on the LVMH share, along with its target price of 352 euros.
Tiffany renegotiated covenants on its debt on 8 June (the day before it published its results) and now has, its management says, sufficient leeway to continue to respect them in the future, Oddo says.
The broker says that recent press comments suggested that a failure to comply with these covenants could have led to a review of the planned merger by LVMH.
However, Oddo believes that an acquisition by LVMH remains the most likely scenario. It cannot see any details in this publication that would lead it to believe that LVMH would have more reasons to question the acquisition if it wanted to; Oddo still belives that this is the most likely scenario.
Copyright (c) 2020 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.