Derichebourg: Oddo BHF still on hold

(CercleFinance.com) - Oddo BHF maintains its 'neutral' rating on Derichebourg shares, with an unchanged target price of E5.


Yesterday, sales came in at E3,621.3m, in line with Oddo BHF's expectations.

The analyst reports that management is confident about the group's outlook. Indeed, although the last few months have been in line with the end of FY 2023, management anticipates a plateau in volumes and better price performance (note recent rise).

Oddo BHF believes that the group should benefit from an easing in electricity prices (gain of E15m) and leaves its EBITDA estimate unchanged (E358.4m, i.e. +7% y-o-y), in line with the consensus (E354m), while management targets over E350m.

Valuation remains modest at 4.0x 2024 EBITDA and 6.7x 2024 EBIT, reflecting a 36% discount to historical multiples. Business growth should be modest, and Elior's turnaround remains a challenge, the broker concludes.


Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.