Saint-Gobain: Oddo still a buyer after rumours

(CercleFinance.com) - Saint-Gobain could be interested in taking over the US company GCP Applied Technologies according to Bloomberg.


Oddo says that the US group RPM International is also in the running as Holcim could be too.

The credibility of such a transaction will lie in Saint-Gobain's ability to convince the market of its ability to turn around the profitability of GCP Applied Technologies, the analyst says.

Based on a 40% premium over its price on 29/11, 2.3 billion dollars would be paid - although there is no guarantee that the deal will be successful given other potential candidates.

Analysts calculate the transaction having a ROCE over three years - i.e. to 2024 of 7.7% for an EV/EBITDA of 8.5x (cost of debt at 2.2% and synergies at 70 million dollars or 6% of sales.

The broker confirms its Outperform rating on the share with a target price of 80 euros, which is currently trading at about 58 euros, down almost 1%, actually underperforming the CAC 40 (-0.6%).



Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.