Richemont: Oddo lowers its price target

( – The annual turnover stands at 19,181 ME indicating a turnover in the 4th quarter at 4,16 ME, i.e. a growth of +27%, the EBIT reached 3,390 ME reflecting a margin of 17.7%, which gives a 2nd half of the year at 1,441 ME, ie a margin of 14.0% (compared to a margin in the 1st half of 21.9%).

Following this announcement, Oddo confirms its neutral opinion on the share but lowers its target price to 125 CHF (vs. 140 CHF).

Oddo was expecting E19,094 million respectively (i.e. growth CER in the 4th quarter of +26%) and E3,765 million (margin at 19.7% of which 17.8% in the 2nd half) and the pre-publication FactSet consensus amounted to respectively 19071 ME and 3805 ME.

‘ The annual EBIT comes out nearly 10% below expectations with an increase in operating costs in H2 which, if expected and announced by the company, goes much further than expectations (operating expenses represented 41.4% of sales in S1, they go to 48.2% on S2) ‘indicates the analysis office.

‘ Although YNAP’s EBIT loss was visibly reduced in H2, Maisons Joailliers et Horlogers Spécialisés recorded an increase in the margin over the financial year -70 bps / -80 bps below expectations, hence the impression of a operational leverage compared to before COVID less strong at Richemont Maisons Joaillères (margin gain of around 300 bps) than at LVMH F&L (observed gain of 800 bps) or at Hermès (+500 bps) ‘adds Oddo.

Copyright © 2022 All rights reserved.
The information and analyzes disseminated by Cercle Finance only constitute a decision-making aid for investors. The responsibility of Cercle Finance cannot be held directly or indirectly following the use of information and analyzes by readers. It is recommended that any uninformed person consult a professional adviser before any investment. This indicative information does not in any way constitute an incitement to sell or a solicitation to buy.

Did you like this article ? Share it with your friends with the buttons below.




Source link -85