Oddo maintains its 'neutral' rating on Française des Jeux (FDJ), with a target price raised from €37.5 to €38.5.

FDJ published good results for 2022, broadly in line with expectations. Nevertheless, the share price has been hit quite hard on the stock market (-5.4% at close), probably due to the disappointment over the dividend (1.37 E per share, 4% below expectations)', estimates Oddo.

This stock market reaction is judged 'severe' by the analyst, particularly in view of the Group's results and its outlook for 2023.

Oddo also points out that the European Commission's investigation into the amount of the balancing payment made by FDJ to the French state at the time of privatization should continue to weigh on the equity story. Management hopes for a decision in 2023, but the procedure could be lengthy, especially with possible appeals.

For 2023, FDJ expects sales growth of 4/5%, based on a pro forma landing in 2022 at 2,514 ME, which includes the acquisitions of Aleda and Addition, implying a sales range of 2,615 / 2,640 ME for 2023 according to our estimates', reports the analyst firm.

Copyright (c) 2023 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.