(News Bulletin 247) – Saint-Gobain organized an analyst lunch on June 30 with Benoit Bazin, CEO and Sreedhar N. CFO. Following this meeting, Oddo BHF confirms its Outperformance advice on the share with a price target of €70.
‘Benoit Bazin does not wish to ‘build an empire’ but rather pay particular attention to sustainable construction (growth, cash and ROCE) while respecting high CSR criteria’ indicates Oddo BHF.
The analyst also indicates that share buybacks will continue, especially at this level of EBITDA multiple, in proportions exceeding 500 ME per year.
‘ In terms of M&A, Saint-Gobain still wants to increase its presence in Africa/Asia but also in the United States The advantage of the North American market lies in its greater consolidation (listed companies) than the European market, which is still largely held by families whose criteria are less based on ROCE’ emphasizes the analysis office.
Oddo BHF continues to believe that Saint-Gobain still has the potential for good surprises, particularly in the first half of the year. The consensus is for a decline in annual EBIT of 10% against an increase of 5/10% for Sika and even >10% for Holcim. The analysis office now expects a drop of 6%, or 4% above market expectations.
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