Bonduelle: Oddo reduces target price.
(CercleFinance.com) - In a report issued on Wednesday, after the publication of the group's annual results followed by a analysts' meeting, Oddo had reduced its target price for the Bonduelle share from 37 euros to 35 euros, while reiterating its "neutral" rating.
In particular, the broker highlights the fall in sales in Russia (-3.4% in rubles, after +1.8%), with a loss in the group's market share "benefiting small local brands positioned at the entry-level segment".
However, underlying operating profit rose by 1.2% in organic terms and is up 4.6% as reported, while the underlying EBIT rose by 6% to 58.5 million euros.
Adjusted for Ready Pac Foods, the rise is limited to 2%, with a margin that is down 60 basis points to 7.4%, due to unfavourable weather conditions.
Oddo has reduced its revenue and EBIT forecasts by 5% and 6% respectively, "mainly because of a lower than anticipated contribution from Ready Pac Foods." It also includes an organic growth of 2.6% at the group's historical businesses, against +3.6% previously.
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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.
In particular, the broker highlights the fall in sales in Russia (-3.4% in rubles, after +1.8%), with a loss in the group's market share "benefiting small local brands positioned at the entry-level segment".
However, underlying operating profit rose by 1.2% in organic terms and is up 4.6% as reported, while the underlying EBIT rose by 6% to 58.5 million euros.
Adjusted for Ready Pac Foods, the rise is limited to 2%, with a margin that is down 60 basis points to 7.4%, due to unfavourable weather conditions.
Oddo has reduced its revenue and EBIT forecasts by 5% and 6% respectively, "mainly because of a lower than anticipated contribution from Ready Pac Foods." It also includes an organic growth of 2.6% at the group's historical businesses, against +3.6% previously.
Copyright (c) 2017 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.