Natixis: Oddo confirms buy rating and target price

(CercleFinance.com) - Oddo believes that there was an excessive fall in the Natixis share price yesterday.


The total of ungraded corporate bonds incriminated by the press only represent 1.0 billion euros out of H2O's total AuM of 28.3 billion euros at the end of 2018, the broker says. Oddo confirms its buy rating on the share with a target price of 6.5 euros.

H2O's contribution to Natixis Group's net attributable income would be around 6% (50% stake) H2O's 2018 results (NP = 360 million euros) are atypical, as they are inflated by exceptional performance fees, Oddo adds.

H2O generated exceptional performance fees in Q4 2018. Out of total performance fees of 426 million euros in 2018 for Natixis, about 240 million euros cannot be extrapolated: Natixis has always been very clear on this point. This means that "normal" performance fees are about 185 million euros for all Natixis' AM activities. The broker integrates this level into its 2019 forecasts, against 287 million euros in 2017.


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