FDJ: share drops following a downgrade

(CercleFinance.com) - La Francaise des Jeux shares are down in Paris on Monday after Deutsche Bank downgraded the stock, arguing that the French lottery group has had a "solid" beginning of the year.


At around 2 pm, the FDJ share is down about 0.3% at 41.7 euros, while the market is up by about 0.3% at the same time.

Deutsche Bank analysts underline that the group has had a "solid" start to the year, with sales growth accelerating in Q1, despite lockdowns, which resulted in almost 10% of its sales outlets having to close.

Deutsche Bank explains that this good start to the year has led it to raise its estimates for the group, while increasing its corresponding target price from 42 euros to 44 euros, a target which, however, only shows a limited upside potential of under 5%.

After rising by 11% YTD and a spectacular 110% increase since its IPO of 2019, the share is now trading at a 2022 P/E of 13.5x, which highlights a "marked" premium to the international sector average of 11.4x, DB concludes.

These factors explain why the broker prefers to downgrade its rating on the share from "buy" to "hold".


Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.