Korian: Oddo slashes target price

(CercleFinance.com) - Oddo maintains its neutral rating on Korian shares, while reducing its target price for them from 14 euros to 9 euros.


After 2022, which was dogged by inflation, Korian provided a 2023 organic growth forecast of at least 8%, including ~4% (price effect), a guidance that has fallen short of the consensus, with the magnitude of the decline having surprised the market, Oddo says.

In 2023, capex will be close to 500 million euros, against nearly 830 million euros in 2022, the analyst says, who has adjusted his 2023-2024 projections to take the guidance into account.

Oddo also said that the group's refinancing remains a point of uncertainty for the market, with a refinancing of about 900 million euros planned for 2023. Oddo fears a slight loss of real estate value or a slight increase in the cost of financing, rather than blockages or serious difficulties in refinancing (unlike Orpéa).


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