Legrand: Oddo remains neutral, although reassured
(CercleFinance.com) - An Oddo BHF analyst says that he remains neutral on the Legrand share, after an interview with the group's CFO, which was reassuring on what the group masters.
The broker says that in the current crisis, each week brings its more news, generally bad, for the moment, in economic terjms (i.e. increasing lockdowns), but this trend could be reversed. Nevertheless, it could be difficult for the group to provide guidelines for 2020. Oddo currently expects a 2.6% decline in organic terms for 2020, although this could well prove to be over-optimistic, while its adjusted EBIT margin is expected to reach 19.1% (-90bp).
Oddo BHF confirms its target price of 57 euros (downside potential of 5%). The analyst says that the broker still believes that Legrand is a share to be favored in the context of the economic crisis, due to its best in-class status. However, the analyst is concerned about the evolution of demand in Europe, which could be lastingly damaged by halts to projects (the broker does not believe in a 'catch-up' effect).
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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 says that in the current crisis, each week brings its more news, generally bad, for the moment, in economic terjms (i.e. increasing lockdowns), but this trend could be reversed. Nevertheless, it could be difficult for the group to provide guidelines for 2020. Oddo currently expects a 2.6% decline in organic terms for 2020, although this could well prove to be over-optimistic, while its adjusted EBIT margin is expected to reach 19.1% (-90bp).
Oddo BHF confirms its target price of 57 euros (downside potential of 5%). The analyst says that the broker still believes that Legrand is a share to be favored in the context of the economic crisis, due to its best in-class status. However, the analyst is concerned about the evolution of demand in Europe, which could be lastingly damaged by halts to projects (the broker does not believe in a 'catch-up' effect).
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.