Geberit: Oddo still a seller, but raises target price

(CercleFinance.com) - Oddo BHF reinstates its "reduce" rating on the share of sanitary part group Geberit, while raising its target price from 410 Swiss francs to 458 Swiss francs, stressing that its second quarter was reassuring and management's tone was confident at the conference.


The group is one of the best-in-class in its sector, in particular benefiting from strong pricing power, a healthy balance sheet, its status as a European leader, high EBIT margins and strong cash flow generation, Oddo points out.

However, the broker considers that these strengths are already largely priced in, with a 2021 EV/EBIT multiple estimated at 27x, compared to an historical average of 20x.

The share is down slightly (-0.2%) in early trading on Wednesday.


Copyright (c) 2020 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.