(CercleFinance.com) – Oddo BHF confirms its ‘underperformance’ rating on Latécoère, with a price target reduced from 0.65 to 0.01 euros.
The analyst indicates that Latécoère postponed its general meeting scheduled for June 28 due to slow negotiations with OEMs on prices.
‘The company was unable to finalize its 2023 annual accounts and suffered a negative impact on its results due to the inability to pass on inflation, supply chain disruptions and cost overruns,’ says in essence the broker.
In this context, Oddo BHF expects an adjusted EBITDA of -16.3 ME in 2024 for a turnover of 711.9 ME (+15.8%)
‘We do not foresee a return to positive EBITDA before 2025 with +4.6 ME. However, based on our forecasts, Latécoère would still be very far from its covenants linked to the EMP (5x at the end of 2025), which portends further tense discussions,’ adds the analyst.
At this stage, Oddo BHF does not perceive any tangible acceleration in the cash generation trajectory before 2027, nor an M&A solution that could be favorable to the minority shareholder.
These elements therefore encourage the design office to ‘stay away from the title’.
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