Oddo BHF confirms its "outperform" rating on Groupe Seb shares, over the medium term, although has lowered its target price from €100 to €82, following a profit warning issued by the small appliance manufacturer for 2025.
The broker has lowered its organic growth estimate from +3% to +0.2% and is sticking to the mid-range of the guidance for operating profit of €575m, implying a downward revision of nearly 21%.
When it publishes its results on October 23, the group should provide more details by geographical area and help us to better understand the impact of competitive intensity within the sector (particularly the price effect), the analyst says.
In the near term, Oddo BHF believes that momentum remains difficult due to uncertainties surrounding the consumer environment, while Seb should benefit from innovations to fuel growth in the medium term.
The world leader in Small Domestic Equipment, SEB S.A. is backed by 40 emblematic brands (Tefal, Seb, Rowenta, Moulinex, Krups, Lagostina, All-Clad, WMF, Emsa, Supor, etc.). Net sales break down by family of products as follows:
- consumer products and equipment (88.2%): cookware (frying pans, saucepans, pressure cookers, utensils, etc.), small electrical appliances (electric cookware; deep fryers, rice cookers, pressure cookers, etc.), beverage preparation equipment (refrigerators, freezers, etc.), beverage preparation equipment (coffee makers, kettles, etc.), food preparation equipment (blenders, food processors, etc.), small non-cooking appliances (linen care equipment, hoovers, fans, etc.) and personal care equipment (hairdressing and depilatory appliances, etc.). Net sales by geographical region are split between Western Europe (34.7%), Europe/Middle East/Africa (16.5%), China (26.1%), Asia (6.6%), North America (11.2%) and South America (4.9%);
- professional cookware and equipment (11.8%): hot and cold drinks preparation equipment, professional cooking equipment, cookware and kitchen utensils, hotel equipment.
At the end of 2024, the group had 44 production sites worldwide.
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