Bic: SG still a buyer after a disposal.

(CercleFinance.com) - Following the announcement of a disposal from the Bic Graphic division, Société Générale (SG) has confirmed its buy rating on Bic, the specialist in disposable consumer products.

SG maintains its 12-month target price at 154 euros.

Yesterday, Bic announced the sale of assets and shares of its North American operations and “sourcing” in Asia from its former Bic Graphic division. The buyer - the private equity fund HIG Capital - will pay a total of 80 million dollars (about 71 million euros).

According to SG estimates, this amount should lead to a capital loss of around 20 million euros. SG analysts say that, “The disposal price does not look especially generous but takes into account low profitability and the lack of a strategic competitive position.”


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