Oddo maintains its 'neutral' rating on Bic with an unchanged target price of 73 euros, judging that the group published 'contrasting' results for the 4th quarter.

In the last three months of the year, Bic reported sustained sales growth, to 526.7 ME, or +9.1% on a comparable basis, but also a more disappointing adjusted operating income of 43.2 ME, or 15.8% below Oddo's estimate.

We note that most of the difference with our Q4 ROC estimates is due to the Paper Division, which posted ROC of -8.9 ME, compared with 2 ME," stresses the analyst. At the same time, the lighters business grew by +10.9% on a comparable basis, while shavers were up +16.4%...

'For 2023, management has indicated that it expects sales growth at constant exchange rates of between 5% and 7%, which is slightly higher than our expectations (+4.9%) and those of the consensus (4.6%)', reports the broker.
All in all, this publication does not change our perception", he concludes.

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