Oddo BHF maintains its 'neutral' rating on Kaufman & Broad shares, with a price target reduced from 28 to 24.5 euros.

Last night, Kaufman & Broad reported sales of €848.8 million for the first half, up 47.8% from €574.5 million a year earlier.

This increase is in line with analysts' expectations (Oddo BHF was forecasting sales of ME 846), and can be explained by a stronger contribution from the Commercial division, with sales of ME 380.9 (ME 87.3 in H1 2022) due to the impact of the Austerlitz project, says Oddo BHF.

On the other hand, the analyst points out that MOP came in slightly below expectations, at 8% versus 8.2% expected.

Furthermore, Kaufman & Broad's management has adjusted its targets downwards, expecting sales to increase by 6% to 10% (i.e. around -5% compared with the previous estimate). Return on sales should remain unchanged at around 8%.

Oddo BHF is therefore lowering its 2023 sales and ROE estimates by around -5%.

'All in all, following this publication, our 2023e EPS have been lowered by 11%', says the broker, who nevertheless points out that 'the Austerlitz project is a major support factor.

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