TRIGANO : Oddo confirms its recommendation on the stock
January 05, 2023 at 06:48 am EST
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Oddo maintains its 'outperform' rating on Trigano shares, with a target price of 148 euros.
According to the analyst, Trigano's first-quarter sales were "disappointing", coming in at €782.3 million versus the expected €921.7 million.
For the 2022/2023 financial year, the Group did not give any quantified targets, but nevertheless continued to state that demand for motorhomes remains buoyant, and that trade shows are going well (attendance in Germany, Italy, France and the UK).
"On this basis, we note in particular that the order backlog is saturating production capacity for 2023", says Oddo, for whom "given the price increases achieved in 2022, the Group should be able to stabilize its profitability level in 2023".
All in all, this publication confirms the broker's investment rationale, namely good visibility on the business given the size of the order book, good resilience of margins due to price increases in 2022/2023, and a very favorable balance sheet situation.
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Trigano specializes in the design, manufacturing, and marketing of leisure vehicles and equipment. Net sales break down by family of products and services as follows:
- leisure vehicles (94.5%): motor-homes (78.2% of net sales; Europe's No. 1 automaker; 48,400 vehicles sold in 2022/23; Trigano, Challenger, Autostar, Arca, Chausson, Roller Team, Eura-Mobil, Karmann-Mobil brands, etc.), caravans (7.9%; 14,300 units; Sterckeman and Caravelair), mobile-homes (3.6%; 4,500 units; Résidences Trigano) and other (1.8%). The group also offers vehicle equipment (8.5%; refrigerators, kitchen appliances, screen porches, etc.; Camping-Profi, Euro Accessoires, Clairval, etc.) as well as leasing and financing services;
- leisure equipment (5.5%): primarily trailers (112,100 trailers sold in 2022/23; Erca, Sorel, Trelgo brands, etc.), garden equipment (swings, garden sheds, swimming pools; Abak, Amca, Yardmaster), and campsite equipment (tents, caravan awnings; Jamet, Plisson, etc.).
Net sales are distributed geographically as follows: France (32.6%), Germany (24%), the United Kingdom (10.7%), Italy (6.5%), Belgium (4.6%), Spain (4.2%), the Netherlands (3.6%), Sweden (3.1%), Switzerland (1.5%), Denmark (1.3%), Norway (1.1%) and other (6.8%).