ORPEA : Oddo BHF keeps its distance from the stock and reduces its target price
November 15, 2023 at 03:49 am EST
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Oddo BHF maintains its 'underperform' rating on Orpea shares, with a price target reduced from 0.5 to 0.025 euros, following the Commercial Court's validation of CDC's capital increase.
The implementation of Orpea's accelerated sauvegarde plan is set to continue with three capital increases, of respectively E3.884 billion (capital increase with preferential subscription rights, known as "apurement"), E1.16 billion without preferential subscription rights reserved for CDC, CNP Assurances, MAIF and MACSF Epargne Retraite, and E390 million to which the members of the group have undertaken to subscribe.
The proceeds will be used to repay unsecured debt. The operation is designed to save Orpea, but also to favor major investors such as those in the group," emphasizes Oddo BHF.
The broker considers the probability of success of the capital increases to be 'very high', but prefers to remain on the sidelines and await a better assessment (sometime in Q1 2024) of the strategy to be pursued by the group.
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ORPEA is the European leader in global dependency care. The group operates retirement homes, follow-up care clinics, and psychiatric clinics.
At the end of 2022, ORPEA had a network of 992 facilities (90,860 beds) located in France (358 facilities; 33,462 beds), Benelux/the United Kingdom/Ireland (193 facilities; 10,708 beds), Central Europe (237 facilities; 23,765 beds), Eastern Europe (124 facilities; 12,764 beds), the Iberian Peninsula and Latin America (79 facilities; 10,007 beds) and China (1 facility; 154 beds)
The group has a real estate portfolio of nearly 2.3 million m2 with a value of EUR 6,500 million.
Net sales are distributed geographically as follows: France/Benelux/the United Kingdom/Ireland (59.9%), Central Europe (25.6%), Eastern Europe (9.3%), Iberian Peninsula and Latin America (5.1%) and other (0.1%).
ORPEA 
