(Boursier.com) — Maisons du Monde rose 5.4% to 4.8 euros at the start of the week in Paris, remaining in demand after its annual publication. Following contact with management, Oddo BHF explains that in a difficult context, management has initiated an “Inspire Everyday” transformation plan aimed at restoring business growth and improving FCF generation which should reach a cumulative amount of 100 ME over the period 2024-2026 (vs 27.4 ME in 2023). For 2024, management has not given any objectives but the broker understands that the first part of the year should remain under pressure (change in turnover probably identical to that observed in 2023) before recovering in H2.
The transformation plan (adaptation of the offer, cost saving program, reduction of capital intensity, etc.) seems consistent with the current economic environment but the extent of the restoration of margins by 2026 remains to be seen. this uncertain stage (the analyst assumes an EBIT margin of 7.1% in 2026 vs. 9.7% in 2019). 2024 will remain a year of transition with a further decline in activity. In this context, the analyst reiterates his ‘neutral’ opinion with a target lowered from 6.5 to 5 euros, obtained using stock market comparables.
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