NEXITY : Oddo BHF reduces its target price for the share
February 29, 2024 at 04:20 am EST
Share
Oddo BHF maintains its 'neutral' rating on Nexity shares, with a price target reduced from €17.1 to €15.
Last night, the group published results that were broadly in line with expectations, with sales down 9% to €4,273m (the group was targeting €4.3bn) and RO of €246m (guidance €250m), showing a 210bp drop in profitability to 5.7%.
This decline is mainly due to a lower contribution from residential property.
For 2024, the Group does not give precise targets, but confirms that ROCE will be positive, marking a low point.
In the final analysis, the Group is demonstrating relative resilience in its reservations, and the prospect of stabilization in the various economic parameters of operations (construction costs; interest rate trends) suggests that 2024 could be a stable year (new housing reservations)", believes the analyst.
On the other hand, given the deterioration in profitability in 2024, FCF generation will remain very low, so that the current year will remain a transitional one", he concludes.
Copyright (c) 2024 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.
A leading integrated player in French real estate, Nexity covers the full range of real estate sales and services offered to individuals, businesses, institutional investors, and local communities, accompanying them throughout the real estate process. Net sales break down by activity as follows:
- sale of new homes (68.9%). The group is also involved in building land allotment and urban regeneration activities (Villes & Projets);
- real estate management services (20.4%): residential property management, student residence management, consulting and real estate transaction services (for individuals, businesses, and investors), network marketing of real estate leasing investment products, management, promotion, and development of real estate franchise networks, etc.;
primarily activities related to urban renewal (Cities & Projects);
- sale of commercial real estate properties (10.7%): sales of office buildings, skyscrapers, commercial complexes, logistics platforms, businesses and hotels.
France accounts for 98.6% of net sales.
NEXITY 
