(CercleFinance.com) – The group announced the cessation of production of all APIs at its Brindisi site, quality control failures having been identified and being the subject of an in-depth investigation.
Following this announcement, Oddo BHF confirms its Underperformance opinion on the stock and lowers its price target from E6 to E2.9.
‘The duration of this shutdown is not yet known but management is committed to giving a little more visibility to the market during the 2nd quarter,’ indicates Oddo BHF.
The group is suspending its 2024 guidance, i.e. declining sales of between -4 and -7% and a core EBITDA margin of between 6 and 9%.
‘ We therefore decide to adjust our estimates downward by removing 52 ME from our topline
(only 2 months of sales over the year of the site taking into account 2023) which leads us to emerge with a drop of 11% in sales (compared to -6% init) for a margin now of 5.9% (compared to 7.9% init) ‘ indicates Oddo BHF.
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