(Boursier.com) – In once again limited volumes, LDC nibbles 0.4% to 98.8 euros the day after its quarterly point. The poultry industry generated revenues of 1.3 billion euros in its third fiscal quarter, up 15.7% in value and 7.5% in volume. At identical scope and constant exchange rates, the increase is 12.5% in value and 3.5% in volume.
Sales during the key holiday season were in line with expectations. However, in a context still marked by the unprecedented rise in the price of raw materials and charges, negotiations, essential to preserve the balance of the sectors, have been initiated with the main customers. To date, only part of the requested increases have been obtained. The achievement of the current operating profit target of around EUR 200 million remains conditional on the outcome of these ongoing discussions, the management specified.
Portzamparc mentions a very good publication which gives it confidence in the ability of the group to reach its annual objective or even exceed it. The analyst is to ‘buy’ the title with 148 euros in the viewfinder.
Oddo BHF speaks of a still strong quarter. Overall, volumes are stable despite the price increases in poultry, in particular internationally. LDC however retains its guidance of ROC pending further revaluations. The broker believes that the group, by virtue of its leading position in the poultry market, should not have any difficulty in obtaining them. The challenge will be to obtain them for the Catering division in 2022-2023. The analyst is ‘outperforming’ the share with a target of 111 euros. The valuation of LDC is not expensive, the title is treated with a discount of nearly 16% compared to its history, underlines Oddo BHF.
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