ABC Arbitrage will gain from high volatility, Kepler says
10/03/2022 12:11
** Kepler Cheuvreux raises ABC Arbitrage BITI.PA to "buy"
from "hold", calling it "an attractive hedge against volatility"
thanks to its resilient profile that is geared to gain from
market turmoil amid the Russia-Ukraine crisis
** "We believe ABC Arbitrage will fully benefit from the
surge in volatility and high traded volumes, and the decrease in
M&A (given the low visibility) should be more than compensated
by these two factors," the broker says
** It says the group's strong balance sheet, regular and
generous dividend, and still improving top-line and earnings are
some of the French arbitrage strategist's positive aspects
** According to Kepler, current volatility levels could lift
the group's H1 2022 revenue as high as in H1 2020, at around EUR
40-45 mln, and believes it could exceed EUR 60 mln ($66.28 mln)
in FY 2022
** Ahead of ABC Arbitrage's full-year results, Kepler cuts
its EBIT forecast for 2021 by 14% while increasing its 2022-2023
estimates from what it says was an already high base
($1 = 0.9053 euros)
(Reporting by Olivier Cherfan)
((olivier.cherfan@thomsonreuters.com))