Plastic Omnium: Oddo says group has pleasantly surprised

(CercleFinance.com) - Oddo believes that despite a difficult environment in H1 2021, and particularly in Q2, the auto equipment maker has surprised positively, reporting results and FCF that exceed expectations.

Following this announcement, the analyst confirms his Outperform rating on the stock with a target price of 38 euros.

Following these very sound results, the group maintains its conservative production scenario (+8%, while IHS expects +10%), although has raised its FY targets. It now expects an operating margin of at least 6% (vs. 6% previously), which analysts still consider (unsurprisingly) conservative after its performance in H1.

The broker points out that the management did not wish to comment on its supposed interest in the 60% stake in Hella (which would result in an offer for 100% of the capital, i.e. nearly 7 billion euros). Analysts remain convinced that Hella currently being actively considered by the company today.

The share is currently down 1%.


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