Essilor: Oddo adjusts target price
(CercleFinance.com) - Oddo has confirmed its “buy” rating on the Essilor stock, after the group published its Q1 2018 sales.
However, the broker has cut its target price for the share to 125 euros (against 130 euros previously) pending the group's merger with Luxottica.
The group published Q1 2018 sales of 1825 million euros, 2% below Oddo's expectations and 3% below the consensus. The sales of Glasses and Optical equipment fell 2% short of expectations.
Essilor expects to report 4% like-for-like sales growth in 2018 and deliver an operating margin of at least 18.3%. Organic growth is slightly below the group's annual guidance this quarter, which implies an acceleration over the rest of the year, Oddo says in its daily equity review.
In the broker's opinion, it is highly likely that the merger with Luxottica is formalised by the end of Q2.
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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.
However, the broker has cut its target price for the share to 125 euros (against 130 euros previously) pending the group's merger with Luxottica.
The group published Q1 2018 sales of 1825 million euros, 2% below Oddo's expectations and 3% below the consensus. The sales of Glasses and Optical equipment fell 2% short of expectations.
Essilor expects to report 4% like-for-like sales growth in 2018 and deliver an operating margin of at least 18.3%. Organic growth is slightly below the group's annual guidance this quarter, which implies an acceleration over the rest of the year, Oddo says in its daily equity review.
In the broker's opinion, it is highly likely that the merger with Luxottica is formalised by the end of Q2.
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.