Legrand: Oddo confirms rating after results
(CercleFinance.com) - Legrand has announced H1 2019 net income group share that is up 6.
5% at 415.3 million euros, while sales rose by 8% to 3,226.8 million euros.
Following this publication, Oddo maintains its Neutral rating on the share, with a target price of 59 euros.
The broker believes that organic growth is low at 1.5%, which analysts consider as disappointing (2.9% in Q1). Analysts say that growth was hurt by the "Rest of the World" division (-1.4%), due to difficult base effects (Turkey and India) and a sharp fall in sales in the Middle East. However, the group's adjusted EBIT margin is better than expected at 21.3% (vs. consensus of 20.8% and Oddo BHF's estimate of 21.1%).
Management (unsurprisingly) confirmed its 2019 targets. The group aims for organic sales growth of between 0% and +4% in 2019 and an adjusted operating margin before acquisitions (at 2018 scope) of between 19.9% and 20.7%.
Oddo believes that the consensus will probably leave its estimates largely unchanged.
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.
5% at 415.3 million euros, while sales rose by 8% to 3,226.8 million euros.
Following this publication, Oddo maintains its Neutral rating on the share, with a target price of 59 euros.
The broker believes that organic growth is low at 1.5%, which analysts consider as disappointing (2.9% in Q1). Analysts say that growth was hurt by the "Rest of the World" division (-1.4%), due to difficult base effects (Turkey and India) and a sharp fall in sales in the Middle East. However, the group's adjusted EBIT margin is better than expected at 21.3% (vs. consensus of 20.8% and Oddo BHF's estimate of 21.1%).
Management (unsurprisingly) confirmed its 2019 targets. The group aims for organic sales growth of between 0% and +4% in 2019 and an adjusted operating margin before acquisitions (at 2018 scope) of between 19.9% and 20.7%.
Oddo believes that the consensus will probably leave its estimates largely unchanged.
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.