Sixt: Oddo raises target price

(CercleFinance.com) - German car hire group Sixt SE has announced operating revenues that are down 39% at 1,520 million euros, including a 40% drop in the fourth quarter.

As already announced, its underlying pre-tax loss came in at 81.5 million euros (vs. guidance: -70 million euros and -95 million euros).

Analysts say that 600 million euros in cost savings were achieved over the year (~50% on personnel and equipment costs and 50% on fleet costs), including around 175 million euros in Q4 alone, which is a very good performance.

For the current financial year, it expects its operating revenues to increase relative to 2020, with its underlying pre-tax profit also expected to increase. Analysts maintain their estimates, based on 2021 sales of 2,131 million euros (+39% y-o-y) and a 2021 EBIT of 175 million euros, meaning a margin of 8.2% (vs. 12.4% in 2019), the analyst adds.

Oddo confirms its Outperform rating on the stock, having increased its corresponding target price to 124 euros (vs. 118 euros). It believes that Sixt is currently the best placed player to benefit from a recovery in demand.

The share is currently down about 0.5% in a market that is down slightly in Germany.



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