(CercleFinance.com) – The title is down more than 2% on the Frankfurt Stock Exchange. Two analysts lowered their price targets on the stock this morning
Stifel lowers its target price to 260 euros against 305 euros previously but confirms its advice to buy on the value
‘Positive developments in Europe, North America and Latin America are overshadowed by persistent discussions about its objectives and a potential need to reduce them further’, notes the German broker.
Considering that “uncertainty prevails” and that “the new targets do not clear the air”, Stifel indicates that it “has taken a more cautious position on all the key indicators” for the sporting goods supplier.
Credit Suisse underlines that with a turnover down -3.2% in the 1st quarter and a 2nd quarter which promises to be weak (Credit Suisse +1.5%) to reach an annual turnover of + 11-13% in line with forecasts, it will require growth of more than 22% in the 2nd half.
“We consider this very unlikely in the context of slowing global consumption, even if Chinese demand improves. We expect sales growth of 8% for the year, EBIT margins of 9.0% and an EPS decline of 4% to 9% below consensus,” says Credit Suisse.
The analysis office confirms its advice to Underperform on the title and lowers its price target from 205 E to 193 E.
“Even with slightly better than expected sales in North America and EMEA, there are few signs of improved brand awareness relative to peers,” says Credit Suisse.
Copyright (c) 2022 CercleFinance.com. All rights reserved.