(CercleFinance.com) – AlphaValue announced on Monday that it had gone to ‘sell’ Nexity stock, against ‘lighten’ so far, and have lowered its target price to 16.5 euros against 23.2 euros previously.
In a research note, the analyst explains that he believes investors tend to underestimate the adjustment that the French development sector is currently undergoing, a movement similar to that experienced by other European countries, at a time when no sign of an interest rate turnaround until the second half of 23.
“To be clear, we are very worried about the 2024-25 horizon and we are further reducing our EPS forecasts”, he adds, judging that the operating margin of 8% generated last year is not going to cannot be repeated this year.
According to AlphaValue, Nexity will have to arbitrate between its volume of activity and its level of operating profitability in order to maintain its results afloat.
The intermediary also judges that the dividend of 2.50 euros per share paid for the 2023 financial year does not seem more sustainable.
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