(Boursier.com) — Virbac continues its momentum. The day after a jump of 12% in the wake of the increase in its annual objectives, the animal health group climbed another 2.4% to 348.5 euros at the start of the session. Oddo BHF (‘outperform’) raised its EPS estimates by around 15% for 2023 and 10% in 2024 and raised its target from 290 to 385 euros. The recovery in volumes mentioned by Virbac confirms the change in trajectory that the broker perceived in Q3, and which led it to upgrade its recommendation last October. Not only does it provide a momentum effect, but it also has the merit of restoring visibility with a 2024 guidance (reinforced confidence) and the reaffirmation of the 2030 objective, providing the consensus with a rather attractive trajectory. External growth is a real option. However, the improvement in cash also has, for the analyst, the value of an M&A signal: he believes in one or more deals in 2024.
TP ICAP Midcap (‘keep’) for its part revalues the file from 239 to 280 euros following the adjustment of its estimates and the parameters of its DCF. The trajectory of profitability is dependent on the group’s ability to increase volumes across the firm’s divisive ranges. The broker does not include a speculative premium but notes that the stock trades, on the basis of consensus, on an EV/CA ratio of 2.2×2024 when the average of sectoral transactions since 2014 stands at 5x CA .
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