Oddo BHF maintains its 'neutral' rating on Maisons du Monde shares, with a target price reduced from 6.5 to 5 euros.

The company reported a 33% decline in operating income to 45.8 ME for its 2023 financial year, reflecting a 140 bp decline in profitability to 4.1%.

"In a difficult context, management has initiated a transformation plan 'Inspire Everyday' aimed at restoring business growth and improving FCF generation, which should reach a cumulative amount of 100 ME over the period 2024-2026 (vs. 27.4 ME in 2023)", reports the analyst.

According to Oddo BHF, the first part of 2024 should remain under pressure before a recovery in the 2nd half.

'The transformation plan (adaptation of the offering, cost-saving program, reduction of capital intensity...) seems to us coherent with the current economic environment, but the extent of margin restoration by 2026 remains uncertain at this stage', concludes the broker.

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