(News Bulletin 247) – Oddo BHF confirms its ‘outperformance’ rating for Imerys shares, with a price target lowered from 60 to 55 euros.
While the publication concerning the 2nd quarter is expected on July 27 after market close, Oddo BHF is already anticipating ‘a further deterioration in sales volumes’.
The analyst points to the unfavorable basis for comparison linked to a very dynamic Q2 2022 and amplified by good trends in industrial activities.
In this context, Oddo BHF expects a decline in activity in volume of 14% in Q2.
‘In the end, turnover should come out at 1,027 ME (-9% at LFL, change -1%, perimeter 1%)’, underlines the broker who is targeting an unchanged 2023 EBITDA at 604 ME but lowers his turnover forecast to 3 932 ME vs 4,258 ME ‘to integrate more difficult trends’.
The stock could be under pressure in the coming days, despite an already difficult stock market performance, estimates Oddo BHF.
The analyst nevertheless remains positive: ‘We believe that the stock has limited downside potential given the recent poor performance and a recovery in momentum. An opportunity to strengthen cheaply, ‘he says.
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