Bonduelle: Oddo BHF upgrades to 'buy'

(CercleFinance.com) - Oddo BHF has upgraded its rating on the Bonduelle stock from "neutral" to "buy," maintaining its target price at 38 euros, deeming that the share's depreciation is exaggerated, even though Q4 sales are expected to be weak.


The broker underlines that the agri-food group's share price has fallen by 28% since the start of 2018, while overall its 2018 EPS estimates have been reduced by 10% (-13% for the consensus), of which
-5% results from FX factors.

Trading at a 2018/19e P/E that has fallen back to a reasonable level of 11.7x, the timing appears right, while the group's recent adjustment of its targets is more the result of a shift than a questioning of synergies with Ready Pac, the analyst says.


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