Bureau Veritas: Oddo BHF raises target price

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on Bureau Veritas shares, with a target price raised from E30 to E32.


The broker reports that Bureau Veritas has given quantified growth contribution targets for its divisions, and has recalculated the organic growth rates induced by each division on the basis of these assumptions.

Oddo BHF anticipates upside for the M&O division, given the current momentum (+14.4% in 2023, 9.4% in 2022 and 3.1% in 2021) driven by the "verdification" of the fleet.

For the AFC division, Oddo BHF anticipates "rather weak" growth (3.6%) over the long term. As for the Industry division, it also comes as no surprise to see good growth (7.0%), driven by the energy transition.

Finally, B&I comes as a surprise, as the Group's largest division (>30% of sales), in which BVI has global leadership, is capable of above-average growth (7.5%).

In addition, the Group expects a net improvement of 90 bp by 2028, i.e. a level close to 17%, the analyst concludes.


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