Schneider: Oddo confirms rating after roadshow
(CercleFinance.com) - Following the organisation of a meeting with compny management, Oddo confirms its neutral rating on the Schneider share, along with its target price of 85 euros.
Regarding Covid-19 in China, Oddo believes that Schneider's assumptions remain valid, namely a 300 million euro negative impact sales relating to the stoppage of production (80% of capacities currently used) and breaks in the supply chain.
However, the group had not expected such a rapid and strong spread to the rest of the World. This impact is not included in the 300 million euro forecast and the group must wait to see how the situation unfolds in March to quantify an additional impact, the broker says.
Oddo underlines that if the major economic slowdown were to be confirmed, its guidance seems at risk. Even so, the group seems to have levers to protect its margin (pricing, shifting of investments and efforts on costs), Oddo adds.
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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.
Regarding Covid-19 in China, Oddo believes that Schneider's assumptions remain valid, namely a 300 million euro negative impact sales relating to the stoppage of production (80% of capacities currently used) and breaks in the supply chain.
However, the group had not expected such a rapid and strong spread to the rest of the World. This impact is not included in the 300 million euro forecast and the group must wait to see how the situation unfolds in March to quantify an additional impact, the broker says.
Oddo underlines that if the major economic slowdown were to be confirmed, its guidance seems at risk. Even so, the group seems to have levers to protect its margin (pricing, shifting of investments and efforts on costs), Oddo adds.
Copyright (c) 2020 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.