(News Bulletin 247) – Oddo BHF confirms its ‘outperformance’ opinion on Eramet, but lowers its price target from 140 to 137 euros, a ‘relatively modest’ adjustment because its price assumptions are broadly unchanged, as are those of volumes at beyond 2023.
“Despite a less buoyant momentum, Eramet still benefits from an attractive valuation with a discount of more than 50% of the 2024-25 EBITDA multiples on the sector, while the improvement in the operational profile is on the right track”, judges the ‘analyst.
It points to the exit of the alloys activities which should be completed in June with the sale of Erasteel and the start-up in early 2024 of the Centenario lithium project in Argentina, the contribution of which should rise to a third of EBITDA in 2026. .
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