(Boursier.com) — Exel Industries drops 4.5% to 55.2 euros after a half-year point marked by a sharp decline in profit and below analysts’ expectations against a backdrop of high inflation and major disruptions in the supply chain. In terms of outlook, management remains cautious. As Oddo BHF points out, it confirms difficulties in the supply of components, high inflation on raw materials, an automotive industry still under pressure and a garden market in decline after an exceptional year 2021. To offset the inflationary effect, the group is raising selling prices, but margins will remain under pressure…
The broker notes that the valuation is still modest (5.6x estimated 2022 EBITDA and 4.4x 2023 vs 10.5x for historical references). However, the current more uncertain environment requires more caution and the broker’s profit sequence is under negative review. After taking into account the new assumptions within the BE (risk-free rate and risk premium), the broker lowers its target from 72 to 62 euros and remains ‘neutral’ on the file.
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