Eurofins: Oddo BHF still on hold

(CercleFinance.com) - Oddo BHF maintains its 'neutral' rating on Eurofins shares, with an unchanged target price of 58 euros.


Oddo BHF recalls that the short-seller Muddy Waters (short on the stock) yesterday published a 35-page report in which it attacks Eurofins on certain points (mainly around real estate transactions, the cash position and internal procedures).

In response, Eurofins issued a press release this morning, highlighting the weakness and inconsistency of many of the report's arguments, without however addressing in detail, at this stage, the two most serious arguments (real estate transactions + cash position with Deloitte's reclassification).

The company's communication to reassure the markets will be an important issue over the next few days, particularly as it is one of the few companies to be the subject of two short reports in a relatively short space of time (5 years)", stresses Oddo BHF, which believes that otherwise, "the equity story could be weakened in the medium to long term by reputational risk".


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