Bastide: up sharply, a broker raises his recommendation

(CercleFinance.com) - Bastide is up over 6% in Paris after Oddo BHF announced this morning that it was upgrading its rating on the stock from 'neutral' to 'outperform', with a target price raised from €25.
5 to €27.

The analyst reports that the share price has fallen sharply since the consensus view that debt is too high and limiting. The share price has thus lost almost 60% since the beginning of 2021.

'Now engaged in a process of deleveraging with divestments, synonymous with a reduction in leverage, Bastide should enter a positive phase characterized by a very healthy growth dynamic in Services, relayed by mix effects enabling margin increases to be anticipated', judges Oddo BHF.

The analyst believes that the financial risk, linked to debt, and the low stock market liquidity (small cap syndrome observed for almost 4 years) are 'exaggerated'.

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