Oddo BHF reiterates its 'outperform' rating on Xilam, with a price target raised from 37 to 38 euros, judging that the share's decline (-27% since the start of the year) makes the valuation of the cartoon production company attractive.

After the disappointment at the time of publication of the annual sales figures, the impacts on the service business model, combined with the positive effects of the application of the SMA directive on working capital, are greater than we anticipated", he points out in view of the annual results.

According to the analyst, this should enable free cash flow to establish itself durably at a high level, which 'could enable the equity story to regain momentum, given that execution on FCF was historically Xilam's weak point'.

Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.