(CercleFinance.com) – The title is down nearly 2% this afternoon and is down around 6% in one week.
Given the situation in China, Oddo is lowering its May-June organic growth figures for Products (63% of sales) with the continued closures in Shanghai (25% of sales in China) which should lead to a loss of 50% income in June.
“We are now expecting organic growth of 2.5%e (vs. +10%e previously) leading to growth of 3.8%e in H1,” Oddo announces.
The group specified that activity in China (20% of sales) should normalize in July and expects a catch-up effect in the second half.
‘ Overall, we expect a 15.2% margin in H1 2022, vs 15.2% in 2021, 12.6% in 2020 and 17.3% in 2019. Over the year, strong pricing power, cost control and earnings productivity should allow the group to improve its margins’ indicates Oddo.
‘The group says it is on track to meet its 2022 targets despite the impact of lockdowns in China’.
Oddo is rather in line with the consensus on 2022 and maintains its Neutral opinion and its price target of 6000 p.
Copyright (c) 2022 CercleFinance.com. All rights reserved.