Nacon: Invest Securities adjusts its recommendation on the stock

(CercleFinance.com) - Invest Securities adjusts its recommendation on Nacon shares from 'buy' to 'subscribe', while slightly reducing its target price from 3.
8 to 3.5 euros.

After a strong rebound in the share price following the 2023/24 results failed to withstand the stock market correction at the end of June, the Group announced in early July a capital increase with DPS of €16.5m, 80.7% guaranteed.

While the timing may seem ill-advised in view of the positive momentum ahead (Test Drive release in September), and while recourse to debt was our preferred scenario, Nacon secures its 2024/25th financing requirement (estimated at 33.5mE) before generating positive operating FCF in 2025/26th", stresses the analyst.

We see Nacon as an opportunity and recommend subscribing to the capital increase which starts today", concludes the broker.


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