Saint-Gobain: Oddo BHF still a buyer

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on Saint-Gobain shares, with an unchanged target price of E88, after Saint-Gobain announced it had reached a definitive agreement to acquire FOSROC, an unlisted player in construction chemicals, for $1,025m (or E960m) in cash.


Our business plan for Saint-Gobain's acquisition of FOSROC shows a 13.4% ROCE (2027) for an EV/EBITDA of 6.3x in year 3 (cost of debt at 4% and cost synergies at $39m), the broker analyzes.

Overall, we remain convinced that the changes of recent years have not yet been integrated at their fair value", adds the analyst, who believes that, trading at a 2024 EV/EBITDA og less than 6.0x, Saint-Gobain has significant catch-up potential.


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