Rothschild & Co.: Oddo maintains buy rating

(CercleFinance.com) - Oddo says that the the group's performance over Q4 2018 and for FY 2018 seems higher than expected.


2018 net income came in at 286 million euros, against the consensus of 251 million euros (+14%), up 21% compared to 2017 proforma.

2018 revenues are up about 7.5% compared to 2017, despite a less favorable environment in Q4 2018.

The broker believes that the US should continue to drive revenue growth, and the methodical construction strategy of this franchise seems to be paying off more - and it is set to continue.

Oddo is raising its forecasts (+7%) to integrate performance in M​​&A and Private Equity, although it maintains its target price at 44 euros, as the broker is not changing its dividend forecasts. Oddo thus maintains a positive opinion (buy rating) on the stock, given upside potential of over 40% and above all strong visibility in terms of dividends.



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