Sixt: Oddo BHF still a buyer; adjusts target
(CercleFinance.com) - After a roadshow organised with Sixt's management, Oddo BHF has said that it is maintaining its "buy" rating on the share of the vehicle leasing company, having, it says, found management confident about the group's capacity to continue to report dynamic growth thanks to its International Rental business coming onstream, while maintaining a high margin.
The analyst says that the roadshow reinforces the broker's positive opinion of Sixt, with the group expected to deliver solid results through its international development (the US will be growth driver it says). The share is trading at a 2019e P/E of 14.2 x compared to a sector P/E of 11x in 2019e. The broker still believes that this premium is justified in light of the high level of profitability (it is the most profitable company in the sector), the strength of its balance sheet and a more aggressive growth profile of EPS, the analyst adds.
Oddo BHF has however reduced its target price from 129 euros to 121 euros, after updating its model. This still suggests upside potential of 60%.
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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.
The analyst says that the roadshow reinforces the broker's positive opinion of Sixt, with the group expected to deliver solid results through its international development (the US will be growth driver it says). The share is trading at a 2019e P/E of 14.2 x compared to a sector P/E of 11x in 2019e. The broker still believes that this premium is justified in light of the high level of profitability (it is the most profitable company in the sector), the strength of its balance sheet and a more aggressive growth profile of EPS, the analyst adds.
Oddo BHF has however reduced its target price from 129 euros to 121 euros, after updating its model. This still suggests upside potential of 60%.
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.