Getlink: Oddo still a buyer, but cuts target price

(CercleFinance.com) - Oddo maintains its Outperform rating on Getlink shares, although has reduced its target price to 19 euros (from 21.
3 euros).

The recent depreciation of the pound raises some questions, the analyst says, with the group generating just over half of its Eurotunnel revenue in pounds, i.e. 36% of its total revenue, with around 1/3 of its costs in this currency.

Thus, Oddo notes that a 10% fall in the pound's value (vs. euro) leads to a 4.2% reduction in EBITDA and a 7.2% reduction in FCF. Adding that this could impact the broker's tp by -5.8%, this scenario remains theoretical: the pound has fallen by 7% since July although is only 3.7% below the average for 2021.

Oddo has adjusted its target price to 19 euros. The analyst raises EBITDA estimates by 6.3% for 2022 and by 11% for 2023. The broker integrates market assumptions leading to an increase in its WACC to 5.98% vs. 5.4% previously.



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