Oddo maintains its 'neutral' rating on SMCP shares, with an unchanged target price of 8 euros.

The analyst highlights the company's 2022 results, which are "very good despite China", with 2022 sales of €1,206 million, up 13.1% organically (oddo expected 13.5%, consensus 11.4%).

Adjusted EBIT came in at €111 million, slightly ahead of expectations (ODDO BHF 100 million CSS at €106 million), i.e. a margin in line with 2021 at 9.2%.

For 2023, the Group forecasts mid-to high-single digit growth and an increase in adjusted EBIT margin", reports Oddo.

Oddo also reports on the sale process of the 37% stake by GLAS (the trustee holding 29% of the capital) and AlixPartners (the advisor managing the 8% pledged but not recovered by GLAS so as not to have to launch a takeover bid).
A press release states that the transaction is at a preliminary stage and may not be completed," reports the broker.

Indeed, while a leading investment bank has been mandated to find a buyer, questions surround the 16% stake held by Dynamic Treasure Group, currently frozen by court order.

The situation could therefore remain frozen "as we do not believe that any player would risk launching a takeover bid without being certain of being able, even theoretically, to reach a squeeze-out, i.e. 90% of the capital", analyzes Oddo.

Nevertheless, 'the fact that the process has been launched may indicate that creditors have information on the evolution of the 16% situation, whereas we have no new information on the subject', concludes the analyst.

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