Rubis: Oddo BHF raises its price target

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on Rubis shares, with a target price raised from E36 to E39, ahead of what the analyst describes as an 'important' AGM.


The arrival of shareholders with an activist profile could lead to changes in governance and a review of the company's resource allocation strategy, which have historically weighed on valuation, Oddo BHF says.

The broker recalls that Rubis achieved record profits in 2023 (RN = E354m vs. E307m at the previous record in 2019), which management intends to maintain in 2024 (guidance: stability - Oddo BHF/consensus = E361m/E349m), which has not prevented the group from reaching very low levels on the stock market.

Oddo BHF believes that the strategy could be revisited in renewable energies in order to better optimize the group's value. The stock is trading 34% below its historical average PE and offers a yield >6%, the broker points out.


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