Showroomprive: unexpected capital increase puts pressure on stock

SRP Groupe SA

03/12/2018 10:00

** Shares in a French e-commerce company  SRPG.PA  down 16%
after launching 40 million euros capital increase
    ** Oddo BHF says that the capital increase was not expected
and shows that co's cash generation still is not sufficient to
fund its growth
    ** Broker lowers target price to EUR 2.5 from EUR 4.8 in
line with the capital increase
    ** Oddo BHF maintains 'Neutral' rating on the stock pending
better visibility on the cost savings plan, return to more
normalised profitability and the commercial synergies expected
with Carrefour
    ** Brokerage lowers 2018 sales forecast for SRP Groupe to
EUR 678 MLN (vs EUR 681 MLN previously) 
    ** Brokerage reduces co's 2019 and 2020 growth outlook to 5%
(vs 7%) given the slowdown in growth seen in e-commerce


 (masha.trybus@thomsonreuters.com)