Ekinops: share price surges, first half-year considered resilient

(CercleFinance.com) - On Tuesday, Ekinops shares stood out on the Paris Stock Exchange following a half-yearly publication which analysts judged to be resilient in the face of current market difficulties.


The Breton telecoms equipment supplier's shares are currently climbing by almost 12%, one of the biggest gains on a Paris market up 0.7%.

On Monday evening, Ekinops reported consolidated sales of 57.5 million euros for the first six months of the year, down 19% on the first half of 2023.

Its gross margin nevertheless rose to an all-time high of 56.1% in the first half, compared with 53.1% a year earlier and 52.1% at the end of the 2023 financial year, an increase which the group explains by the growing weight of software and services sales in sales.

Half-year Ebitda stands at 8.2 million euros, or 14.3%, compared with 14.3 million euros in the first half of 2023, representing an exceptional margin of 20.2% a year earlier, and 14.4% over the full 2023 financial year.

In a reaction note, analysts at TP Icap Midcap - Buy on the stock with a price target of 5.5 euros - hail 'particularly resilient margins'.

Against an adverse backdrop, the company's half-year results testify to its resilience, reflecting the strength of its business model and the management skills of its executive team", the brokerage firm points out.

Ekinops has stated that it expects Q3 sales to be 'in line with previous quarters', and is aiming for a sharper improvement in business in Q4.

'Visibility on the prospects for recovery is strengthening, making the extreme undervaluation of the share all the more unjustifiable', comment analysts at TP Icap.

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