Wendel: excessively discounted, Oddo BHF says
(CercleFinance.com) - Oddo BHF has indeed reduced its target price for the Wendel share from 169 euros to 140 euros (-17.
1%), although analysts still believe that the stock is still trading at an excessive discount relative to its restated book value.
The broker therefore maintains its buy rating on the stock.
Note that on 16 November the holding company announced a restated book value (NAV) of 6.7 billion euros (145 euros per share), which is down almost 18% since the beginning of the year, while Oddo BHF was expecting 7.1 billion euros. At issue: in the listed sector, the group suffered from falls in the value of its stake in Bureau Veritas, as well as Saint-Gobain (-535 million euros in all). However, it also suffered from the fall in valuations of unlisted investments (-728 million euros), which is partly due to the decline in the multiples used to value the stakes, with the remainder due to a revision in earnings growth outlooks, analysts said.
However, analysts estimate that Wendel's current discount relative to its NAV is 28.5% - above its historical average range of 20% to 25%.
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.
1%), although analysts still believe that the stock is still trading at an excessive discount relative to its restated book value.
The broker therefore maintains its buy rating on the stock.
Note that on 16 November the holding company announced a restated book value (NAV) of 6.7 billion euros (145 euros per share), which is down almost 18% since the beginning of the year, while Oddo BHF was expecting 7.1 billion euros. At issue: in the listed sector, the group suffered from falls in the value of its stake in Bureau Veritas, as well as Saint-Gobain (-535 million euros in all). However, it also suffered from the fall in valuations of unlisted investments (-728 million euros), which is partly due to the decline in the multiples used to value the stakes, with the remainder due to a revision in earnings growth outlooks, analysts said.
However, analysts estimate that Wendel's current discount relative to its NAV is 28.5% - above its historical average range of 20% to 25%.
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.