Legrand: Oddo a buyer before trading update
(CercleFinance.com) - Oddo has a buy rating on the Legrand stock with a target price of 77 euros, a few days before the group publishes its annual turnover.
The broker expects dynamic growth in Europe in the last quarter (+3.1% in France, +3.5% in Italy and over 4% in the "Rest of Europe"). However, it expects "relatively weak" performance in the US, with organic growth of 0.8% in "North & Central America", due to the consolidation of Milestone over five months over this period , "with embedded organic growth that is expected to be negative (-4% to -1.5% in H2 2017), due to a very unfavourable comparison basis."
In all, Oddo targets organic growth of 2.8% over Q4 2017, meaning full-year growth of 3.1% (in line with the consensus of 3.1%), as well as a continued 80 basis point improvement in the group's adjusted Ebita margin to 18.9%.
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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.
The broker expects dynamic growth in Europe in the last quarter (+3.1% in France, +3.5% in Italy and over 4% in the "Rest of Europe"). However, it expects "relatively weak" performance in the US, with organic growth of 0.8% in "North & Central America", due to the consolidation of Milestone over five months over this period , "with embedded organic growth that is expected to be negative (-4% to -1.5% in H2 2017), due to a very unfavourable comparison basis."
In all, Oddo targets organic growth of 2.8% over Q4 2017, meaning full-year growth of 3.1% (in line with the consensus of 3.1%), as well as a continued 80 basis point improvement in the group's adjusted Ebita margin to 18.9%.
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.