Roche Bobois: Tending towards luxury - Bryan Garnier starts
21/10/2020 09:32
** Bryan Garnier initiates coverage of French furniture
retailer Roche Bobois RBO.PA with "buy", citing its high-end
positioning tending towards luxury outside France
** Bryan Garnier sees Roche Bobois as the leader in high-end
furniture in France and a major player abroad, particularly in
North America
** Bryan Garnier also highlights Roche's fabless business
model with no internal production facilities but in-house
design, which allows for a better reactivity with two
collections a year, while competitors like Minotti, Ligne Roset
or BoConcept launch one
** The company's customer base is far less affected by
partial unemployment and its purchasing power should be
preserved throughout 2020-2021, the broker says
** "We also believe that Roche Bobois will suffer less from
the sanitary measures to be implemented in the stores
post-lockdown easing", it adds
** The expected 2021 targets miss is already priced in,
Bryan Garnier says, while the market overlooks the free upside
provided from potential new buyback agreements with franchisees,
that could make up for the delay in 2021 targets delivery
** Bryan Garnier sets its PT at EUR 22, implying at 26%
upside, it says
((anait.miridzhanian@tr.com))