SEB rises after CMD offers comfort to shareholders

SEB SA

15/12/2023 09:26

** Shares in Groupe SEB rise around 3% to about 114.7 euros,
its highest level since May 2022, after the France-based maker
of household equipment held its capital markets day, which,
according to analysts, provided comfort to shareholders
    ** The group confirmed its medium-term guidance, seeing at
least 5% revenue growth over the next three to five years, a
2024 operating margin close to 10% and rising to 11% over the
medium-term, and a "substantial annual free cash flow
generation"
     ** SEB "confirmed the strength and sustainability of the
Group's business model, its residual growth potential and the
highly profitable Professional sector, which will outperform the
Group's historical margin standards", Midcap Partners analyst
Sarah Thirion says in a note
    ** The broker keeps its 2023, 2024, and 2025 estimates
unchanged, but updates 2026-2028 estimates, "incorporating more
sustained topline growth and an EBITDA margin of 10.5% in 2026,
11% in 2027 and 11.5% in 2028"
    ** Berenberg analyst Fraser Donlon writes in a note that
"the event was reassuringly uneventful", adding that the company
may give a "positive surprise on margins in the mid-term"
    ** In a nutshell, "financial targets leave some upside to
consensus," Donlon says

 (Reporting by Gaëlle Sheehan)
 ((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))