Solvay: Oddo remains neutral after investor day
(CercleFinance.com) - Oddo has confirmd its Neutral rating on the Solvay stock, along with its target price of 130 euros, after the group organised an investor day in London yesterday.
EBITDA is the group's main financial target, which is expected to grow by +6% to +9% in organic terms, which exceeds Oddo's own expectation (+5%).
Analysts add that the other financial targets relate to 1/ the generation of FCF, which is expected to grow by +10/15% p.a. (thanks to EBITDA growth, Capex discipline and reduction in financial expenses) and 2/ ROCE, which is expected to improve by +50/100 bp over the period and thus show value creation for shareholders (level of the WACC reached in 2017).
Although the broker appreciates the group's road map presented yesterday (its achievement could justify a valuation of close to 160 euros per share analysts calculate), in their opinion financial targets through to 2021 should be seen in context, pending the more details about the succession of the company's CEO.
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.
EBITDA is the group's main financial target, which is expected to grow by +6% to +9% in organic terms, which exceeds Oddo's own expectation (+5%).
Analysts add that the other financial targets relate to 1/ the generation of FCF, which is expected to grow by +10/15% p.a. (thanks to EBITDA growth, Capex discipline and reduction in financial expenses) and 2/ ROCE, which is expected to improve by +50/100 bp over the period and thus show value creation for shareholders (level of the WACC reached in 2017).
Although the broker appreciates the group's road map presented yesterday (its achievement could justify a valuation of close to 160 euros per share analysts calculate), in their opinion financial targets through to 2021 should be seen in context, pending the more details about the succession of the company's CEO.
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.