(CercleFinance.com) – Oddo BHF estimates that growth in the 2nd quarter should decelerate a little more visibly.
‘Growth should remain clearly positive in Q2 in Asia Pacific but slow significantly compared to Q1 which at +36% benefited from a favorable basis of comparison in China’ indicates the analyst.
‘Activity in Europe, Middle East, Africa faces a more difficult basis of comparison in tourism in Q2, hence a probable deceleration compared to the +17% observed in Q1’.
‘Our previous forecast of comparable Retail turnover growth at +9% was clearly optimistic (recent consensus at +7%), we adopt a more cautious approach at +5% reflecting -10% in the Americas, +9% in Asia Pacific and +12% in Europe, Africa, Middle East,” adds Oddo BHF.
For the remaining two quarters of the financial year at the end of March 2024, the analyst expects +12% in Q3 compared to +15% previously and +6% compared to 8% in Q4. The revision of annual turnover at the end of March 2024 reaches -2%.
‘Based on operational costs still expected to increase by almost 6% y/y for the financial year to the end of March 2024, our adjusted EBIT forecast for the financial year falls by 5% reflecting a margin of 19.0% compared to 19.6%’ .
Oddo BHF confirms its Underperform opinion and lowers its price target to 1970p (from 2060) to reflect the lowering of its profit forecasts.
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