(CercleFinance.com) – Nexity fell sharply on the Paris Stock Exchange on Thursday after deciding to step up its adaptation measures intended to deal with the ‘unprecedented’ crisis currently affecting its sector.
In a press release published yesterday evening, the developer explains that the continued deterioration of the real estate market imposes a ‘new deal’, to which it plans to adapt in an ‘accelerated’ manner in 2024.
The group explains that it has notably taken the decision to initiate an information-consultation process in the coming weeks with a view to implementing a job protection plan, which will lead it to suspend the dividend at 2023 title.
After 2023 annual results in line with objectives, Nexity also warns that the 2024 financial year will mark a financial ‘low point’ in terms of its operating income.
‘Given the deterioration in profitability in 2024, the generation of free cash flow (FCF) will remain very low so that the current financial year will remain a year of transition’, we warn at Oddo.
The research office thus renews its ‘neutral’ opinion on the stock, with a price target reduced from 17.1 to 15 euros.
Nexity, however, assures that its reorganization should enable a rebound in 2025, which should result in an improvement in profitability.
On the stock market, Nexity shares nevertheless suffered the blow and tumbled 22% on Thursday mid-morning, suffering the second biggest drop in the SBF 120 index behind Euroapi (-50%).
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