Saint Gobain: Oddo says stock discounted
(CercleFinance.com) - Oddo believes that trends in Q4 will be marked by a slowdown in growth in a less favourable market context (Q4 estimated at +0.
2% LFL, including volume effect of -1.3% and price effect of +1.5%).
Ahead of this publication, Oddo confirms its buy rating on the share, with a target price of 42 euros (21% upside).
Oddo says that the shre is trading at a discount of over 30% relative to listed peers, which represents an historic peak.
At the operational level, the group seems to be able to meet the market's expectations. Analysts expect EBIT of 3,353 million euros, up around 5% LFL. The group should expect LFL EBIT growth for 2020, that is in line with the consensus, Oddo says.
After the surprise validation of Continental Building Product and the end of the asbestos saga in the US (+4% on NP), the broker now thinks that the time has come to reposition itself on the share, to play the sale of PAM in Q1, followed by a share repurchase program in Q2 (for part of the proceeds from the sale of Sika shares), it 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.
2% LFL, including volume effect of -1.3% and price effect of +1.5%).
Ahead of this publication, Oddo confirms its buy rating on the share, with a target price of 42 euros (21% upside).
Oddo says that the shre is trading at a discount of over 30% relative to listed peers, which represents an historic peak.
At the operational level, the group seems to be able to meet the market's expectations. Analysts expect EBIT of 3,353 million euros, up around 5% LFL. The group should expect LFL EBIT growth for 2020, that is in line with the consensus, Oddo says.
After the surprise validation of Continental Building Product and the end of the asbestos saga in the US (+4% on NP), the broker now thinks that the time has come to reposition itself on the share, to play the sale of PAM in Q1, followed by a share repurchase program in Q2 (for part of the proceeds from the sale of Sika shares), it 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.