Fnac Darty: Bryan Garnier still a buyer
(CercleFinance.com) - Analyst Bryan Garnier says today to maintain its recommendation "Purchase" on the title Fnac Darty, the day after the publication of new details by the specialized magazine LSA on the repurchase offer of La Grande Récré that would have deposited the specialized group in the distribution of household appliances and in culture.
According to LSA, Fnac Darty has proposed 16 million euros for the acquisition of Ludendo's assets and inventories, including 8 million euros for La Grande Récré, taking over 106 stores and 838 employees.
The "very ambitious" plan mentioned is based on an investment of nearly 115 million euros, including work on digital, web-based sales and logistics capacity.
"At this early stage and given the details available, we now estimate the deal could be positive on Fnac Darty's 2018-21e CAGR growth (+90bp) and slightly dilutive on EBIT margins (-30bp on average over the period)," analyses Bryan Garnier, which also reiterates its target price of 108 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.
According to LSA, Fnac Darty has proposed 16 million euros for the acquisition of Ludendo's assets and inventories, including 8 million euros for La Grande Récré, taking over 106 stores and 838 employees.
The "very ambitious" plan mentioned is based on an investment of nearly 115 million euros, including work on digital, web-based sales and logistics capacity.
"At this early stage and given the details available, we now estimate the deal could be positive on Fnac Darty's 2018-21e CAGR growth (+90bp) and slightly dilutive on EBIT margins (-30bp on average over the period)," analyses Bryan Garnier, which also reiterates its target price of 108 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.