Oddo BHF maintains its 'outperform' rating on LDC shares, with an unchanged target price of 178 euros.

LDC reported a 2.6% increase in sales for the 3rd quarter of its 23/24 financial year, almost 2% below Oddo BHF's expectations.

At the same time, LDC confirmed its 2023/24 sales target of >E6 bn and an operating profit in excess of 350 ME, implying a margin of around 5.8% vs. 5.1% in 2022/23.

Despite the persistent inflationary context, LDC has good visibility for the rest of the year", says the analyst.

Following this publication, the broker has lowered its 2023/24 sales forecast by around 1%, while maintaining its OIR forecast unchanged.

Despite lower-than-expected volumes in Q3, we believe that the evolution of the product mix and lower raw material costs should support the Group's profitability over the year", concludes Oddo BHF.

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