Bic: Bryan Garnier remains neutral after group disappoints
(CercleFinance.com) - This morning Bryan, Garnier & Co.
maintained its neutral rating on the share of the Bic group, a specialist of disposable products (lighters, pens and razors), which yesterday published its annual accounts two weeks ahead of schedule. It also warned the market about a sharp drop in its margin this year. The broker has reduced its target price from 102 euros to 94 euros.
Although Bic has brought forward the publication of its annual accounts, they did not come as good news. After 19.8% in 2017, its normalized operating margin should return to between 17% and 18% this year, management warned, which anticipates organic growth of 1% to 3% this year, after 1.4% in 2017.
Bic warned that its gross margin will be affected by the rising cost of raw materials, higher depreciation, with the group continuing to invest specifically in brand support and operating expenses.
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.
maintained its neutral rating on the share of the Bic group, a specialist of disposable products (lighters, pens and razors), which yesterday published its annual accounts two weeks ahead of schedule. It also warned the market about a sharp drop in its margin this year. The broker has reduced its target price from 102 euros to 94 euros.
Although Bic has brought forward the publication of its annual accounts, they did not come as good news. After 19.8% in 2017, its normalized operating margin should return to between 17% and 18% this year, management warned, which anticipates organic growth of 1% to 3% this year, after 1.4% in 2017.
Bic warned that its gross margin will be affected by the rising cost of raw materials, higher depreciation, with the group continuing to invest specifically in brand support and operating expenses.
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.