Sixt: Oddo more optimistic about next few quarters

(CercleFinance.com) - Oddo has reviewed recent trends and is now more confident about the coming quarters, with it believing that the German car hire group's newsflow will improve significantly.


Over the past few weeks, several press articles have mentioned a considerable increase in rental car prices for the summer season. This trend, which started in the US in March, supported by a massive vaccination campaign, has now transferred to Europe (post lifting of restrictions). We expect prices to remain high over the next few months, the broker says.

Analysts are raising their 2021/2022 consolidated sales estimates by an average of 6% to 2,081 million euros and 2,818 million euros, taking into account more dynamic activity in the US and a gradual recovery in demand in Europe, Oddo says.

Our 2021 underlying pre-tax profit estimates have been raised by 15% to 180 million euros, taking into account a very favourable price environment (which should continue over the next few quarters).

We believe that Sixt is currently the best positioned player to benefit from a recovery in demand. Indeed, development in the US will be the growth driver for it, the analyst added.

Oddo maintains its Outperform rating on the stock, increasing its corresponding target price to 144 euros (from 131 euros).


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.