(Boursier.com) — ADP Group resumed 2.4% to 130.1 euros after the announcement of the simplification of its operations in India. “Three years after our acquisition of a stake in the Indian group GMR Airports, a new phase of our presence in Asia begins today. The operation initiated will reveal the value of our stake through an airport company listed on the financial markets. This operation will enable us to fully seize the development opportunities of the Indian airport market in the coming years”, indicated Augustin de Romanet, CEO of the Paris airport managers.
Oddo BHF affirms that while the operation should not come as a big surprise because it is part of the strategy defined by the group to develop its international platforms, and that it will bring some liquidity to the stake held by ADP in its assets Indian companies, it will also involve an additional payment for ADP of 331 ME, or approximately 3.3 euros per share. Given that the broker is struggling to see this as the optimal path to value creation for the group, this operation does not change its cautious view of the stock. He therefore reiterates his opinion ‘underperform’ with a target of 120 euros.
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