ALD heads for worst day since 2020 on 'disappointing' 2026 targets

Ayvens SA

18/09/2023 08:43

** Shares in ALD  ALDA.PA  dive more than 13% after Societe
Generale's  SOGN.PA  car leasing unit sets 2026 financial
targets that J.P.Morgan calls "disappointing"
    ** ALD guides for earnings asset growth of 6% CAGR in
2023-26 vs equal or above 6% previously, ROTE of 13-15% by 2026
with 52% cost/income (C/I) ratio, and UCS result assumed at 20%
of the expected 2023 level
    ** The "PowerUP 2026" strategic plan follows the recent
closing of the Leaseplan acquisition on May 22
    ** JPM says the targets imply downside to estimates, mainly
the higher C/I and lower UCS results, adding that a large part
of the more disappointing C/I comes from Leaseplan
    ** The stock is on track for worst day since March 2020,
hitting the bottom of France's SBF 120 Index  .SBF120 
    ** Parent Societe Generale also falls over 6% after its new
CEO Slawomir Krupa outlined his first strategic plan

 (Reporting by Michal Aleksandrowicz)
 ((michal.aleksandrowicz@tr.com))