Rexel: Oddo still a buyer, with new forecasts

(CercleFinance.com) - LFL sales growth is now expected to reach 15.
3%, above a previous forecast range of 12%-15%, benefiting from the recovery, particularly in the United States, and by the rise in inflation.

Oddo analysts expect growth of 14.8%, in line with the consensus, with them saying that the adjusted EBITA margin should be 6.2% for 2021, compared to a previous target of 5.7%.

They add that the consensus is looking for a 5.9% margin this year and should therefore raise its 2021 EPS by around 5%. These announcements imply a significant acceleration in business in Q4; analysts have calculated Q4 LFL sales growth of over 10% vs. Q4 2019, which compares to +7% in Q3 2021 vs. Q3 2020, the broker adds.

For FY 2022, the group says it expects an adjusted EBIT margin of above 6%, compared to 5.8% in 2021 (restated for non-recurrent effects). The analyst says that the group would thus reach its 2023 targets one year ahead of schedule. They note that consensus is looking for an adjusted EBIT margin of 5.85% for 2022.

Oddo confirms its Outperform rating on the stock with a target price of 21 euros.


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