LDC: Oddo BHF confirms buy rating

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on LDC shares, with an unchanged target price of E178.


LDC reported a 2.6% increase in Q3 23/24 sales, almost 2% below Oddo BHF's expectations.

At the same time, LDC confirmed its 2023/24 sales target of >E6bn, with operating profit of over E350m, implying a margin of around 5.8% vs. 5.1% in 2022/23.

Despite the persistent inflationary context, LDC has good visibility for the rest of the year, the analyst says.

Following this publication, the broker has lowered its 2023/24 sales forecast by around 1%, while maintaining its OIR forecast unchanged.

Despite lower-than-expected volumes in Q3, analysts believe that the evolution of its product mix and lower raw material costs should support the group's profitability over the year, Oddo BHF concludes.


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