(News Bulletin 247) – Oddo maintains its outperformance rating on Schneider Electric shares, with a price target raised from 169 to 179 euros.
Yesterday, the company published 2022 results slightly above expectations, with in particular organic growth of 12.2% over 2022 (vs 10.2% expected by the consensus and 10.1% by ODDO BHF) and 16% in Q4 alone, of which 5% volume growth.
‘The 2023 guidance was well above expectations for organic growth (9-11% targeted against 2.8% expected by the consensus). However, we consider the EBITA margin guidance disappointing, with a target change of -20/+10 bp, therefore 17.4%/17.7% (consensus at 17.8%)’, notes the analyst.
In this context, Oddo is raising its EPS by 2% on average over 2023 and 2024 and anticipates organic revenue growth of 9.1% in 2023 (vs. 3.5% previously).
“The group should continue to benefit from its excellent positioning on the themes of electrification and energy efficiency which will support volumes in 2023 and in the medium term”, judges the broker.
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