SES Imagotag tracks best day ever as analysts dismiss second Gotham City report

Vusion SA

07/07/2023 11:07

** Shares in SES Imagotag  SESL.PA  soar 35% after analysts
said the second report from hedge fund Gotham City Research
failed to provide new information on the French smart label
maker's finances
    ** The stock is on track for best day ever if gains hold, as
Friday's move adds nearly 500 million euros to the company's
market cap
    ** In a follow-up to a report alleging misleading financial
statements, Gotham said SES Imagotag's 2022 annual report had
"numerous accounting irregularities"
    ** Portzamparc analyst Maxence Dhoury says the new report
does not look severe at first glance and points to three
unsubstantial lines of attack
    ** SES's head of audit Helen Ploix worked for the French
government and the IMF, and was CEO of a bank, Dhoury notes
    ** On Gotham's statements about administrators not being
independent, Dhoury says the French regulatory code obliges
administrators to own shares
    ** He also dismisses criticism that some of SES Imagotag's
managers own buildings in Austria and rent them out to the
company, which he says is usual practice in France
    ** "There is nothing serious in the attacks of the short
seller," a source following the shares says; "If it was an
accounting irregularity like they said, the share price would
collapse"
    ** Gotham declined to comment, while SES Imagotag said it
would respond in due course

 (Reporting by Olivier Sorgho and Michal Aleksandrowicz)
 ((Olivier.Sorgho@thomsonreuters.com))