BMW: Oddo cuts target price
(CercleFinance.com) - BMW yesterday announced a reduction of its guidance for 2018 due to its Automobile business.
Oddo is maintaining its Neutral rating on the stock and has cut its target price to 80 euros (vs. 88 euros) after the company reduced its earnings estimates.
In the automotive segment, revenues are now expected to be slightly lower than the previous year (versus a slight increase y-o-y). The automotive segment's EBIT margin is now expected to be at least 7% (vs. 8 to 10% previously). The group's pre-tax income is expected to be slightly lower than its level last year (compared to a figure that is comparable with that of last year).
The broker has cut its estimates by -15% or -1.13 billion euros/EBIT Auto and -7.1%, or -537 million euros/net income, group share. Excluding tax, the difference is due to the elimination item (+62 million euros, against -280 million euros previously). Oddo has also adjusted its 2019 estimates and now expects EBIT from its Auto division at the bottom of its range at 8.0% of sales.
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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.
Oddo is maintaining its Neutral rating on the stock and has cut its target price to 80 euros (vs. 88 euros) after the company reduced its earnings estimates.
In the automotive segment, revenues are now expected to be slightly lower than the previous year (versus a slight increase y-o-y). The automotive segment's EBIT margin is now expected to be at least 7% (vs. 8 to 10% previously). The group's pre-tax income is expected to be slightly lower than its level last year (compared to a figure that is comparable with that of last year).
The broker has cut its estimates by -15% or -1.13 billion euros/EBIT Auto and -7.1%, or -537 million euros/net income, group share. Excluding tax, the difference is due to the elimination item (+62 million euros, against -280 million euros previously). Oddo has also adjusted its 2019 estimates and now expects EBIT from its Auto division at the bottom of its range at 8.0% of sales.
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.