Direct Energie: Oddo confirms rating after results.

(CercleFinance.com) - Oddo believes that overall Direct Energie's results are in line with estimates, while its guidance is a bit cautious.


Following this publication, the broker's analysts confirm their Neutral rating on the stock, along with a target price of 37 euros.

The group's sales increased by 66.5% to 1,692 million euros in 2016. It benefited from continued commercial growth, winning a total of 782,000 new clients in France, compared with 594,000 in 2015 (+31.6%).

Direct Energie recorded a very sharp rise in its gross margin to 233.8 million euros (+57.5%). Meanwhile, its net income also reached a record level of 123.6 million euros (multiplied by 4.5).

In 2017, the Group is targeting a customer base of 2.5 million, sales of 2,000 million euros and a recurrent operating profit of 100 million euros. Oddo believes that the group's underlying operating profit estimate is a bit cautious.


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