Cegedim: stock collapses - broker downgrades and slashes TP

(CercleFinance.com) - Oddo has downgraded the innovative tech company Cegedim's shares from buy to neutral, while reducing its corresponding target price to 20 euros (vs.
27 euros previously).

The analyst points to "disappointing" H1 results - both in terms of its margin and cash generation.

Overall, underlying EBIT came in at 6.8 million euros, i.e. a margin of 2.5%, down 40% from 11.3 million euros in H1 2021) with its margin down 200 bp (margin 4.5% in H1 2021), the broker said.

Oddo expects FY underlying EBIT to fall by around 30%, to 28 million euros (compared with previous estimate of E45m and E40m in 2021), with a margin of 5.5% (compared with 7.7% in 2021).

The broker cites recurring disappointments and a weak outlook, with no clear medium-term guidance or targets.

The share price has collapsed this morning - it is currently down over 17.5%.


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