SAINT-GOBAIN : Oddo BHF confirms its recommendation following results
March 01, 2024 at 03:06 pm IST
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Oddo BHF maintains its 'outperform' rating on Saint-Gobain shares, with an unchanged target price of 80 euros.
The analyst reports that operating income for 2023 came in above expectations at 5,251 ME, or -1.6% in actual terms, while operating profit was driven by a very good performance in all divisions and a positive price/cost effect.
FCF amounted to 3.9 BnE versus 3.8 BnE in 2022 (62% cash conversion), while sales for 2023 were in line with consensus at 47,944 ME, -6.4% in actual terms and -0.9% pcc.
In 2024, the Group is aiming for a double-digit operating margin, and will continue to pay particular attention to the price/cost ratio.
'The share should react well after the publication of an 11% operating margin in a context of sluggish Industrial/Construction markets', believes the broker.
Oddo BHF concludes: "Overall, we remain convinced that the changes of recent years have not yet been fully integrated (green deal, sustainable ESG profile, strong pricing power, change in the Group's profile via emblematic acquisitions and new divestments).
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Compagnie de Saint-Gobain is one of the world leaders in the production and distribution of construction materials for the construction, mobility, healthcare and industrial sectors. The activity is organized around 4 areas:
- manufacturing of high-performance materials: ceramic products (No. 1 worldwide in thermal and mechanical applications for ceramics) and plastics (No. 1 worldwide), abrasive products (No. 1 worldwide) and reinforcing materials (No. 1 worldwide in wire of glass);
- distribution of materials: primarily under the names Point.P in France, Dahl in Scandinavia and Telhanorte in Brazil;
- manufacturing of construction products: exterior products (PVC and façade products, asphalted shingles, etc.), insulation (glass wools, insulating foams, metal ceilings, etc.) and ductwork, industrial mortars, and gypsum materials;
- manufacturing of glass: plate glass, automobile windows, specialty glass (fire and nuclear protection glasses, etc.). The group also transforms and distributes building glass.