Nexity: Oddo downgrades stock, cuts target price

(CercleFinance.com) - Oddo has downgraded its rating on Nexity from "outperform" to "neutral", having reduced its target price to 46 euros (from 51 euros).


The broker says that this reduced target price is due to the expected increase in debt resulting from the strategic positions taken in the real estate sector. However, Oddo does not question the group's strengths, which still has excellent fundamentals.

Therefore, despite the fall in the allocation of building permits for new housing in France over the past two years, the commercial offer has increased by 6%, which is reassuring, the analyst notes.

For 2021, the group's targets are based on revenues of over 4.4 billion euros, excluding the contribution from activities sold, with operating profit of more than 360 million euros, showing a margin of more than 8%, which is sound performance, Oddo says.


Copyright (c) 2022 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.