Legrand: Oddo confirms rating ahead of quarterly results

(CercleFinance.com) - Oddo has confirmed its buy rating on the Legrand stock, along with its target price of 78 euros before the group announces its Q1 2018 results.


The stock is set to remain a "quality stock," characterised by the group's ability to make price increases every year (1.3% in 2017), external growth that is under control, a high operating margin and finally one of the strongest cash generators in the sector, the broker explains.

Analysts expect organic growth of 2.1% in Q1 (vs. 3.6% in Q4). This 2.1% organic growth includes 1% growth in France, 1.5% in the rest of Europe and 2% in North and Central America.

Oddo also expects an adjusted EBITA margin of 19.9%, up 20 bp. The broker believes that the group should be able to offset commodity price inflation with price increases (up by over 1.3% in 2017 as a reminder). The broker expects net income of 178 million euros, up 19%.



Copyright (c) 2018 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.