Barco’s annual results have disappointed investors and analysts, and the start of 2021 will still be difficult. The title lost nearly 7% on Tuesday.
With activities focused, among other things, on cinemas and presentation systems in companies (Clickshare), it will be understood that the pandemic and its containments weighed heavily on the annual results of Boat
which were unveiled two weeks earlier than expected.
29% drop in sales, to 770 million euros, ebitda divided by almost three, to 53.6 million euros, where the market was counting on 63 million, margin cut in half, at 7%, and net result plunging into the red with a loss of 4.4 million euros.
Two rays of light illuminate this dark picture. A: the dividend of 0.378 euro is maintained and may be received in cash or in shares. Two: Improvements in sales and orders levels were seen in the fourth quarter compared to the previous one. As a forecast, the group specializing in image technologies mentions an ebitda margin of between 5 and 10% for the first half of the year. Not very fat …
On the stock market, investors winced at this annual report, the stock losing 6.6% at the close. Among analysts, it is the word “disappointment” that comes up most often.
“Once again, Barco’s results are below our expectations and those of the consensus,” notes Kris Kippers, of Degroof Petercam (“keep”; 21.5 euros), which also notes that at this stage, the forecast for the start of the year is not very bright. Bottom line: He believes that Barco stock will be in the dark for some time as the vast majority of the group’s trades are unlikely to show a strong rebound anytime soon.
“We believe sales and the unchanged dividend may provide some support today in a largely disappointing record.”
Looking towards 2022
Same observation in terms of results at Kepler Cheuvreux, or Loïc De Smet remains to “keep” on the title with a target of 15 euros, for three reasons: visibility remains limited, the company needs to restore investor confidence and disruptions are still affecting some of its key markets due to of the pandemic.
Marc Hesselink, d’ING (“keep”; 16 euros), judge, for its part, that investors must look towards 2022 and beyond to perceive a little attraction in the Barco file. “We believe sales and the unchanged dividend may provide some support today in a largely disappointing record.”
KBC Securities (“accumulate”), which on Monday raised its price target by two euros, to 22 euros, is still cautious about the value, while looking beyond the pandemic.