(CercleFinance.com) – Cegedim sells more than 21% in Paris, after Oddo downgraded its advice on the stock to ‘neutral’, with a target price of 20 euros, against 27 euros previously.
The analyst points to ‘disappointing’ half-year results, both on the margin and on cash generation.
‘Overall, current EBIT comes out at 6.8 ME, ie a margin of 2.5%. In mass, the margin therefore fell by 40% (it stood at 11.3 ME in H1 2021) and in rate, it lost 200 bp (margin 4.5% in H1 2021)’, indicates the broker.
Oddo anticipates a decline in current EBIT of around 30% over the year, i.e. 28 ME (compared to 45 ME in the previous estimate and 40 ME in 2021), and a margin of 5.5% (compared to 7 .7% in 2021).
The analysis office evokes ‘recurring disappointments’ and ‘weak prospects, not accompanied by guidance or precise medium-term objectives’.
‘Cegedim’s problem resides, in our view, in over-investment (opex/capex) that does not generate enough growth increments, on a chronic basis’, analyzes Oddo.
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