(News Bulletin 247) – Oddo maintains its neutral rating on the Korian share, with a price target reduced from 14 to 9 euros.
After a year 2022 marked by inflation, Korian has guided on a 2023 growth of at least 8% organic including ~4% price effect, a guidance that comes out below the consensus. ‘The extent of the decline rather surprised the market’, judge Oddo.
In 2023, investments will approach 500 ME against nearly 830 ME in 2022, indicates the analyst who indicates that he has adjusted his 2023-2024 projections to take into account the guidance elements.
Oddo also indicates that the refinancing of the group remains a point of uncertainty for the market, with a refinancing of around 900 ME planned for 2023. ‘We fear a slight loss in real estate value or a slight increase in the cost of financing, rather than blockages or serious difficulties in refinancing (unlike Orpéa)’, indicates Oddo.
According to the analyst, ‘the configuration of this beginning of the year still appears loaded with contrary elements. Given the 2023 margin and cash profile, we believe that the timing will not be appropriate before the end of 2023’.
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