Elis: Oddo confirms rating, adjusts target price
(CercleFinance.com) - Oddo says that price increases made in 2019 are supporting the industrial cleaner's margins and that the strong improvement in 2020 FCF has been confirmed.
In an inflationary context of wages and energy costs (extra cost of 30 million euros in 2019), the group is expected to succeed in maintaining its EBITDA margin (Oddo estimates this at 31.5%), the broker says.
This reflects the group's ability to pass on price increases successfully without penalising volumes (organic growth +3.3% e). In 2020, FCF generation (268 million euros, vs. 165 million euros in 2019) will also benefit from the reduction in its Capex allocation (18% of sales vs. 20% in 2019) and recent optimisations of the group's debt structure (average cost of 1.5%, vs. 1.8%), analysts add.
Oddo confirms its Buy rating on the share and has nudged up its target price to 22.5 euros (vs. 21.5 euros previously).
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.
In an inflationary context of wages and energy costs (extra cost of 30 million euros in 2019), the group is expected to succeed in maintaining its EBITDA margin (Oddo estimates this at 31.5%), the broker says.
This reflects the group's ability to pass on price increases successfully without penalising volumes (organic growth +3.3% e). In 2020, FCF generation (268 million euros, vs. 165 million euros in 2019) will also benefit from the reduction in its Capex allocation (18% of sales vs. 20% in 2019) and recent optimisations of the group's debt structure (average cost of 1.5%, vs. 1.8%), analysts add.
Oddo confirms its Buy rating on the share and has nudged up its target price to 22.5 euros (vs. 21.5 euros previously).
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.