Baader cuts Fielmann as drop in consumer sentiment will drag near-term

Fielmann AG

17/10/2022 06:58

** Baader Helvea cuts Fielmann  FIEG.DE  to "add" from
"buy", saying it is more cautious on the German eye-wear
manufacturing firm as expects its results to be impacted by the
drop in consumer sentiment
        ** The brokerage expects Fielmann's third-quarter sales
growth to slow down to +1% from +8% in the second quarter, hurt
by lower customer sentiment due to high inflation and the war in
Ukraine
  
        ** Baader also notes that Fielmann should have suffered
from higher operating costs and expects EBT to decline by 35% in
the third quarter
  
    ** It also cuts its full-year expectations and sees sales
growth of +4.3% compared to +8% earlier and EBT margin of 10.27%
versus 12.2% earlier
    ** Still, it is positive on the firm overall, citing the
firm's defensive business model, its attractive dividend yield
and its favourable valuation
    ** It cuts its target price by 41% to EUR 33
    ** Fielmann's stock is down by almost half year-to-date
 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))