Fnac Darty lost more than 7% on the Paris Bourse on Wednesday after announcing that it was "unlikely" that its 2021-2023 free operating cash flow target would be achieved over this period.

The share fell by 7.82% to 33.7 euros at around 08:25 GMT, the biggest drop on the broad Parisian SBF 120 index, itself up slightly by 0.15%.

When publishing its 2022 earnings estimates on Tuesday, the specialist retailer said it expected free operating cash flow to be around -30 million euros, due in particular to "the drop in sales in December and the negative effects of WCR (working capital requirement, editor's note)".

The Group believes it will be difficult to achieve its target of cumulative free operating cash flow of around 500 million euros over 2021-2023. It is extending this target over a longer period of one year.

"Despite rather solid results, this cash disappointment could lead to a further sanction on the stock," said Midcap. While the analysts remain with a "buy" recommendation, they have lowered their price target to 54 euros from 61 euros previously.

"We expect the first half of the year to be difficult, but the valuation, which has already been knocked down, allows us to remain a buyer," they wrote in a note.

By 2022, Fnac Darty's like-for-like sales are expected to have fallen by 1.9% to around €7.945 billion, according to provisional results, with recurring operating income estimated at around €230 million after €271 million in 2021.

(Laetitia Volga, edited by Blandine Hénault)