SGS: stock down after H1 results
(CercleFinance.com) - The SGS share is down over 1% in Zurich on Tuesday, with the certification services provider having reported what Oddo BHF calls contrasting H1 sales and results, which still maintains its "reduce" rating on the stock, while nudging up its corresponding target price from 2,000 Swiss francs to 2,100 Swiss francs.
The group reported sales of 2.65 billion euros, down 20.7% (including -10.4% in organic terms), an adjusted EBITA margin of 12.5% and EPS that is down 30% (above the 27% drop expected by the consensus).
Oddo interprets this publication as fairly good, in that, despite lower than expected revenues, the margin drop-through is below its expectations and those of the consensus. However the broker says that it is not comfortable with the stock's multiples.
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The group reported sales of 2.65 billion euros, down 20.7% (including -10.4% in organic terms), an adjusted EBITA margin of 12.5% and EPS that is down 30% (above the 27% drop expected by the consensus).
Oddo interprets this publication as fairly good, in that, despite lower than expected revenues, the margin drop-through is below its expectations and those of the consensus. However the broker says that it is not comfortable with the stock's multiples.
Copyright (c) 2020 CercleFinance.com. All rights reserved.