Oddo BHF maintains its 'outperform' rating on LDC shares, with a target price raised from €140 to €178.

On the basis of previously announced H1 2023/24 sales of €3,022.3m (+10.2% of which 8.2% organic), LDC reported a 60% increase in operating profit to €193.4m.

This is well above our forecast of 163.5 ME, implying a strong margin increase of 200 bp to 6.4%", says Oddo BHF, which points out that this figure reflects strong growth in the profitability of the Poultry France division, up 50% to 155.6 ME.

LDC confirms its 2023/24 sales target of over 6 BnE, and is now targeting an OIR of 350 ME.

"The share price should react well to this publication. The consensus is likely to raise its forecasts by at least 4%. For our part, our EPS forecasts for 2023/24 and 2024/25 have been raised by 11% and 10% respectively", concludes the analyst.

Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.