Bic: Oddo downgrades stock, cuts target price

(CercleFinance.com) - Oddo has downgraded its rating on the shares of disposable consumer product group Bic from "outperform" to "neutral", having reduced its corresponding target price to 55.
5 euros (vs. 72 euros previously).

The broker points out that although it has many levers to fuel its growth, preserve its margins and ensure a generous return to shareholders, Bic will have to deal with the rise in raw material and freight prices in 2022, factors that it says complicate the equation.

The increase in costs, estimated at about 100 million euros, is therefore likely to slow down the improvement in margins in 2022.

Analysts intentionallly cautious scenario includes a 100-bp drop in profitability, while the consensus still expects a slight increase in profitability, the broker points out.

However, Oddo says that acquisitions are feasible in order to support growth and strengthen the group's presence in buoyant markets (an average of around 100 million euros per year is mentioned).

The market seems to agree - the Bic share is currently down almost 2% on Wednesday morning.


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