(News Bulletin 247) – Oddo maintains its ‘neutral’ rating on Française des Jeux (FDJ) with a price target raised from 37.5 to 38.5 euros.

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The FDJ published good 2022 results, broadly in line with expectations. ‘Nevertheless, the title was sanctioned quite heavily on the stock market (-5.4% at the close), probably due to the disappointment on the dividend (1.37 E per share, 4% below expectations)’, believes Oddo.

This stock market reaction is considered ‘severe’ by the analyst, particularly in view of the group’s results and its outlook for 2023.

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Oddo also points out that the European Commission’s investigation into the amount of the balance paid by FDJ to the French State at the time of the privatization should continue to weigh on the equity story. Management hopes for a decision in 2023 but the procedure could be long, especially with possible appeals.

‘For 2023, FDJ expects sales growth of 4/5%, based on a pro forma 2022 landing at 2,514 ME which includes the acquisitions of Aleda and Addition, which implies a sales range of 2,615 / 2,640 ME for 2023 according to our estimates’, reports the analysis office.

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