Bonduelle: Portzamparc upgrades stock

(CercleFinance.com) - Although it has trimmed its target price for the share from 42 euros to 39.
9 euros, broker Portzamparc has upgraded its rating on Bonduelle from "reduce" to "hold", given the 16% fall in the share price of the agri-food group since it adopted its "reduce" rating.

The analyst who monitors the stock points out that Bonduelle has confirmed its annual sales growth target of 25%, although not that in terms of profitability (+25%) after Q2 revenues that were broadly in line with our expectations.

He has cut his estimates for the group's underlying operating margin by 30 basis points over 2017-18 and by 20 basis points over 2018-19 and 2019-20, taking into account the company's caution on its margins, along with various factors impacts that could affect its profitability.

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