Dia: Oddo remains on Reduce before half-year results

(CercleFinance.com) - Oddo confirms its Reduce recommendation on the share and adjusts its price target to E2 (compared to E3.
3) prior to the announcement of the 2018 half-year results on Thursday 26 July before stock markets open.

“These results are set once again to disappoint”, estimates the analyst firm.
“Financial nose-dives identified for the group since its 1st warning in October 2017, both in terms of sales and margins, lead us to steer clear of the share”, indicates Oddo.

Based on its new EBIT estimates, Oddo is under consensus by -4% and -6% respectively for 2018 and 2019. For the 2nd quarter, the analyst firm is banking on a consolidated turnover of E1,990 million, -9.2% declared and +1.4% like-for-like (compared to +1.9% in the 1st quarter of 2018). EBITDA is expected to be down 22% declared to E121 million (-15.8% organic), i.e. a margin reduction of 101 bp to 6.08% (compared to -3 bp) in the 1st quarter of 2018).

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