Oddo maintains its 'underperform' rating on Latécorère shares, with a price target lowered from €0.35 to €0.20.

The analyst believes that fiscal 2022 proved 'disappointing', with adjusted EBITDA of -8.5 ME versus -1.8 ME expected. However, sales rose organically by 16.5% to 468.4 ME, driven by increased production rates on the A320 and Embraer, and the interconnection of the A350.

In 2023, we expect a further increase in production rates on all programs, with a welcome rebound in B787 production to around 5/month by the end of the year. We anticipate sales of 598 ME (+27.5%)', says the broker.

While 2022 ended with FCF consumption exceeding Oddo's expectations (-100.9 ME vs. -53.3 ME), the company says it is in discussions with its stakeholders, including its lenders, with a view to improving its capital structure

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