(CercleFinance.com) – SES-imagotag continues to erase some of its heavy losses from last Friday after having refuted, yesterday, all the allegations contained in the recent report against the activist fund Gotham.
Around 10:00 a.m., the action thus recovered more than 10%, marking the largest increase in the expanded Parisian index SBF 120, after having already rebounded by 15% the day before.
However, this recovery only makes up for a small part of the 58% drop that had been suffered at the end of Friday’s session.
SES-imagotag, which came under heavy attack from short-term seller Gotham City Research last week, issued a comprehensive press release yesterday, in which it responds in great detail to the US fund’s accusations.
The specialist in electronic labels for physical stores notes in particular that Gotham failed to integrate the revenues from its operational structure as well as those from its joint venture in China.
After the integration of these elements and the restatement of intra-group flows, the turnover for the 2022 financial year does indeed come out at 620.9 million euros, he specifies, an amount entirely generated from customers. exteriors.
Regarding the suspicions of double counting of circular income with its Chinese shareholder BOE, SES explains that it acquires certain components such as screens from its partner Eink before reselling them without margin to the assembly plant of BOE , in charge of manufacturing the finalized electronic labels.
These labels are then resold to SES, which in turn markets them to its customers.
In order to avoid any double counting, these transactions are restated in the consolidated financial statements, which means that the turnover is not overstated, according to SES.
Regarding the supposed non-profitability of the contract concluded with Walmart, the group affirms that the agreement is indeed profitable and in line with the profitability objectives of its strategic plan.
“We salute the speed and quality of the responses provided by SES-imagotag to the Gotham City Research report,” reacted EuroLand, which this morning maintains its buy recommendation and its target price of 180 euros on the title.
Same story with Stifel analysts, who consider the explanations provided by the company ‘convincing’.
‘The presentation was crystal clear, from our point of view, and the elements provided by the management team during the question and answer session (Q&A) sufficiently precise’, judges the design office .
The share price could nevertheless still be heckled during the next sessions, Gotham Research not having to stop there, since the fund generally publishes between two and three reports on the companies it has in its sights.
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