(CercleFinance.com) – Orpea is at the heart of a political and media storm after the publication of ‘Les Fossoyeurs’, a book-investigation produced by an independent journalist pointing out the dysfunctions within the group’s nursing homes. The book brought discredit to the group, and caused the dismissal of the former CEO, Yves Le Masne.
In this unprecedented context, Oddo maintains its ‘neutral’ recommendation on the stock and drastically lowers its target price, from 115 to… 43.5 euros.
The analysis office informs that Orpea has commissioned two audit firms to conduct an assessment mission covering all the allegations reported in this book.
With such an echo in public opinion, the issue is now political, underlines Oddo who expects, in the long term, changes in the regulations governing nursing homes. The analyst also mentions possible sanctions or penalties against the group.
More broadly, it is the very financing of nursing homes that will probably be questioned by the public authorities – or even their place on the stock market. In these circumstances, volatility should be there, the broker believes.
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