Fnac Darty: a buyer, UBS maintains target price

(CercleFinance.com) - This morning UBS confirmed its buy rating on the share of retailer Fnac Darty, also maintaining its target price of 94 euros, representing upside potential of over 35%.


Indeed, the latest statistics published by the Banque de France report that, in France, the sluggish sales of electrical equipment, are in line with a trend also seen in the entire euro zone. According to UBS, this explains the group's flat interim sales figures (-0.4% in organic terms).

Analysts point out that Q1 was hit by very difficult weather conditions, which were followed by strikes in Q2, all of which were accompanied by weak PC and consoles sales, which offset the rise in television sales thanks to the World Cup.

However, profitability did not disappoint, and the group's gross margin improved by 20 basis points thanks to the synergies in purchases, the sales growth value-added services, and probably to a better product mix. Performance was also boosted by the effects of savings. Finally, UBS expects a "recovery" in sales over the second half of the year, even though it may be modest. As a result, its financial forecasts remain unchanged.

Copyright (c) 2018 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.