Oddo BHF has reaffirmed its 'outperform' rating on Groupe Seb, raising its target price from €119 to €127, as it sees a number of strengths for the small electrical appliance manufacturer to improve margins from 2023 onwards.
"In an uncertain environment, exposure to China (26% of sales) and the Professional sector (9% of sales) will be factors supporting organic growth (expected at +5% and +15% respectively) in the short and medium term", the analyst believes.
According to Oddo, 2023 will be the first step in rebuilding margins, with the aim of reaching 10% in the medium term. In parallel with strong free cash flow generation, debt is under control", it adds.
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The world leader in Small Household Equipment, SEB S.A. relies on 35 flagship brands (Tefal, Seb, Rowenta, Moulinex, Krups, Lagostina, All-Clad, WMF, Emsa, Supor, etc.) and a broad product portfolio:
- cookware: frying pans, saucepans, pressure cookers, utensils, etc.;
- small culinary appliances: items for electric cooking (deep fryers, rice cookers, pressure cookers, etc.), beverage preparation (coffee makers, kettles, etc.) or food preparation (blenders, food processors, etc.);
- small non-culinary household appliances: linen care equipment (irons, steam generators, steamers, steamers, etc.), vacuum cleaners, fans, and personal care equipment (hairdressing and depilation appliances, etc.).
At the end of 2023, the group operated 41 manufacturing sites worldwide.
Net sales are distributed geographically as follows: Western Europe (34.1%), Europe/Middle East/Africa (15.2%), China (27.9%), Asia (7%), North America (10.9%) and South America (4.9%).
SEB S.A. 
