Lagardère: Oddo adjusts target price
(CercleFinance.com) - Oddo reiterates Underperform rating on the Lagardère share, while adjusting its target price to 17.
5 euros (versus 15 euros previously - current price down over 3% at about 22.5 euros).
The analyst believes that yesterday Lagardère published 2020 results that were slightly ahead of expectations (EBITA loss of -155 million euros, versus -206 million euros expected by Oddo BHF).
The broker says that the positive point of this publication is that Lagardère Publishing is demonstrating its resilience and strong cash generation. The group's net debt is therefore below its expectations.
However, it adds that visibility is still very low on a recovery in TR (travel retail) and we are still cautious about a change in the group's structure (end of limited stock partnership). It expects a gradual recovery in TR business throughout 2021 and 2022.
The broker expects EBIT of 52 million euros in 2021, based on a 35% organic growth scenario for Lagardère Travel Retail. It forecasts Lagardère Publishing's EBIT at 223 million euros, slightly lower than in 2020.
Copyright (c) 2021 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.
5 euros (versus 15 euros previously - current price down over 3% at about 22.5 euros).
The analyst believes that yesterday Lagardère published 2020 results that were slightly ahead of expectations (EBITA loss of -155 million euros, versus -206 million euros expected by Oddo BHF).
The broker says that the positive point of this publication is that Lagardère Publishing is demonstrating its resilience and strong cash generation. The group's net debt is therefore below its expectations.
However, it adds that visibility is still very low on a recovery in TR (travel retail) and we are still cautious about a change in the group's structure (end of limited stock partnership). It expects a gradual recovery in TR business throughout 2021 and 2022.
The broker expects EBIT of 52 million euros in 2021, based on a 35% organic growth scenario for Lagardère Travel Retail. It forecasts Lagardère Publishing's EBIT at 223 million euros, slightly lower than in 2020.
Copyright (c) 2021 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.