(Boursier.com) — ID Logistics dropped 4.4% to 335.5 euros in the morning on the Paris market. Stifel downgraded the file to ‘keep’, aiming for 350 euros. As expected, the contract logistics group publishes excellent results for 2023, despite a slowdown in sales due to the difficult economic context, particularly in France, explains the broker. ID Logistics has not given any forecast for the current year, but the new acceleration in growth that began in the second half of last year is expected to continue in 2024. The Group should notably benefit from better market conditions in France and of the start-up – establishment of a certain number of new warehouses.
The company, which is gradually regaining its financial flexibility, could also make other targeted acquisitions in Europe or the United States. Given the Group’s excellent track record in M&A, such an operation should create value. Unfortunately, all the good news seems well integrated into the stock price, according to the broker. ID Logistics, up more than 40% over the last 6 months, now trades at more than 25 times its expected 2025 profit. GXO Logistics, its main American competitor, has a PE of 15x for 2025. Basically, the analyst still thinks that the stock should be able to double in value in the next 5 years. In the short term, however, he sees more limited potential. When all the lights are green, there is a risk that one of them will turn orange…
TP ICAP Midcap remains positive on the value and raises the cursor from 384 to 491 euros. The valuation of ID Logistics remains a drag for the moment. But the quality of the file justifies this premium according to the analyst. The title is still part of his strong convictions.
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