(CercleFinance.com) – The group announced for the 1st semester within the framework of a current scope which no longer includes YNAP a turnover of 9,676 ME and an EBIT of 2,723 ME. Oddo was counting on ME 9,316 and ME 2,277. The publication far exceeds expectations ‘the deviation from the consensus is nearly +5% for sales and nearly +13% for EBIT’.
‘ The group’s overall growth reaccelerated in Q2 and returned to just above the average that we calculate for the sector under the effect of a significant improvement in Asia Pacific (39% of total sales) at +6 % after -16% in Q1 (China in very slight growth after a decline close to -30% in the previous quarter’ indicates Oddo.
‘It should be noted that Maisons Joailères found in Q2 one of the strongest growths in the industry, just below the +22% observed for LVMH Fashion and Leather Goods and +24% for Hermès’ adds the analyst.
Oddo estimates that growth should slow down but the analyst is raising its margin forecasts, resulting in an EBIT increase of 13% for the year 2023 and 9% for the years 2024 and 2025.
For Maisons Joailères, Oddo thinks that a brand level of around 35% is sustainable on an annual basis and estimates that the Specialized Watchmakers division is on the way to reaching 20% and could stay there, which leads the analyst to raise its EBIT forecast for the fiscal year to March 2023 by nearly 13% and by nearly 9% for the following two fiscal years.
Oddo raises its price target to CHF 116 (vs. CHF 105) and confirms its neutral advice on the value. ‘This target does not suggest a visible upside at this stage as the stock has appreciated strongly in recent weeks’.
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