Esker: stock slumps - Oddo maintains buy rating
(CercleFinance.com) - Oddo reiterates its Outperform rating on software and IT services group Esker shares, along with its target price of 185 euros.
The analyst highlights H1 results that exceeded his expectations. After previously published sales of 76.3 million euros (+19%, of which +13% organic), underlying EBIT came in at 13.1 million euros, up 42%. The group's operating margin reached 16.9%, improving 300 bp y-o-y, a record level for Esker, Oddo points out.
Esker has logically increased its 2022 target margin, now expecting the upper end of the 13%-15% range (vs. 12%-15% previously). However, given more uncertain market conditions, the group now expects organic growth of 12% to 14% over 2022, the analyst adds.
Whatever the metrics, the share is currently down about 10% at about 118.5 euros.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The analyst highlights H1 results that exceeded his expectations. After previously published sales of 76.3 million euros (+19%, of which +13% organic), underlying EBIT came in at 13.1 million euros, up 42%. The group's operating margin reached 16.9%, improving 300 bp y-o-y, a record level for Esker, Oddo points out.
Esker has logically increased its 2022 target margin, now expecting the upper end of the 13%-15% range (vs. 12%-15% previously). However, given more uncertain market conditions, the group now expects organic growth of 12% to 14% over 2022, the analyst adds.
Whatever the metrics, the share is currently down about 10% at about 118.5 euros.
Copyright (c) 2022 CercleFinance.com. All rights reserved.