Saint-Gobain: remains Top Pick in sector for Oddo
(CercleFinance.com) - Yesterday evening, Saint-Gobain announced the finalisation of the sale of its Building Distribution subsidiary in Germany to the Stark Group.
The group also said that it had achieved its target of 3 billion euros in divestments.
Following this announcement, analysts confirm their buy rating on the share, along with a target price of 45 euros. The share is trading at a discount of over 30% relative to listed peers, which is historically high. Saint-Gobain remains more than ever their Top Pick in its sector, they point out.
The deconsolidation of Distribution in Germany leads the broker to increase its estimate for the group's EBIT margin to 7.9% in 2019 (+10 bp) and to 8.2% in 2020 (+20 bp), Oddo adds.
Even though the road is long and difficult, it believes that the sale of PAM remains the best thing for Saint-Gobain. Oddo believes that the search for a strategic partner is the best solution, in this context, it adds in its daily equity review.
Copyright (c) 2019 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.
The group also said that it had achieved its target of 3 billion euros in divestments.
Following this announcement, analysts confirm their buy rating on the share, along with a target price of 45 euros. The share is trading at a discount of over 30% relative to listed peers, which is historically high. Saint-Gobain remains more than ever their Top Pick in its sector, they point out.
The deconsolidation of Distribution in Germany leads the broker to increase its estimate for the group's EBIT margin to 7.9% in 2019 (+10 bp) and to 8.2% in 2020 (+20 bp), Oddo adds.
Even though the road is long and difficult, it believes that the sale of PAM remains the best thing for Saint-Gobain. Oddo believes that the search for a strategic partner is the best solution, in this context, it adds in its daily equity review.
Copyright (c) 2019 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.