Oddo BHF maintains its 'neutral' rating on Bouygues shares, with its target price raised from 34 to 37 euros.
The broker points out that Bouygues shares "reacted well" to the publication of results, marked by a clear improvement in working capital in contracting activities.
Nevertheless, Oddo BHF sees no urgent need to buy the stock aggressively either, believing that 'the outlook for 2024 growth, particularly in Telecom, could weigh on the share's short-term performance, especially after yesterday's short squeeze'.
Against this backdrop, the analysts have adjusted their estimates to take account of the 2023 results and the Group's guidance. We now expect an ROCA of 2,498 ME (vs. 2,646 ME previously) and an ROP of 2,395 ME (vs. 2,550 ME for Visible Alpha)'.
'The revision is essentially due to less dynamic activity at Equans and a lower contribution from Telecom. We believe the consensus could be gradually adjusted to these levels", concludes the broker.
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Bouygues SA is a diverse group organized around four sectors of activity:
- construction (48.8% of net sales): construction and maintenance of transportation, leisure, and urban development infrastructures (58.4% of net sales; Colas; No. 1 worldwide for roads), building and public works activities concerning networks, electrical and thermal engineering, and facility maintenance (35.2%; Bouygues Construction), and real estate development (6.4%; Bouygues Immobilier);
- telecommunication (13.7%; Bouygues Telecom): mobile telephony, fixed telephony, Internet access, etc.;
- media (4%; TF1);
- other (33.5%; Equans): a company acquired in October 2022.
Net sales are distributed geographically as follows: France (49.6%), European Union (14.6%), Europe (14.8%), North America (12.8%), Asia-Pacific (4.6%), Africa (2.2%) %), Central and South America (1%) and Middle East (0.4%).
BOUYGUES SA 
