Oddo BHF maintains its 'outperform' rating on Saint-Gobain shares, with an unchanged target price of 80 euros.

The analyst reports that operating income for 2023 came in above expectations at 5,251 ME, or -1.6% in actual terms, while operating profit was driven by a very good performance in all divisions and a positive price/cost effect.

FCF amounted to 3.9 BnE versus 3.8 BnE in 2022 (62% cash conversion), while sales for 2023 were in line with consensus at 47,944 ME, -6.4% in actual terms and -0.9% pcc.

In 2024, the Group is aiming for a double-digit operating margin, and will continue to pay particular attention to the price/cost ratio.

'The share should react well after the publication of an 11% operating margin in a context of sluggish Industrial/Construction markets', believes the broker.

Oddo BHF concludes: "Overall, we remain convinced that the changes of recent years have not yet been fully integrated (green deal, sustainable ESG profile, strong pricing power, change in the Group's profile via emblematic acquisitions and new divestments).

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