URW gained over 4% in Paris following the publication of its annual results this morning.

Against this backdrop, Oddo BHF confirms its 'outperform' rating on the stock (URW), with an unchanged target price of 78 euros.

URW reported this morning that it had posted adjusted recurring EPS of 9.62 euros in 2023 (+3.3% yoy) (vs. guidance of 'at least 9.50 E' and consensus of 9.50 euros), reflecting 'the continuation of a post-sanitary-crisis recovery that is still going very well', according to Oddo BHF.

For 2024, management expects adjusted recurring EPS (AREPS) of between 9.65E and 9.8E, above consensus expectations.

URW has also proposed the payment of a dividend of 2.50 euros/share, in line with consensus expectations, i.e. "a very positive signal on the company's turnaround", analyzes Oddo BHF.

The broker believes that URW is now "in better conditions to pursue its divestments".

Moreover, 'even if no significant divestments have been announced for Q4, the company is in discussions concerning 1 billion euros of assets in Europe and the USA, and confirms its objective of radically reducing its financial exposure to the USA in the medium term when the time comes', says Oddo BHF.


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