While maintaining an 'outperform' rating on Vilmorin, a stock included in its 'European Midcap S1 2023' list, Oddo BHF has raised its target price from 68 to 76 euros, on the basis of a smaller discount and an update of its valuation methods.

Valuation remains structurally modest," says the analyst, pointing to ratios of 4.5 times EBITDA and 12.2 times EBIT 2023, compared with 6.3 and 13.6 times respectively for historical benchmarks.

Oddo also believes that the discount to comparables of nearly 30% is 'probably severe for the world leader in vegetable seeds', adding that 'the leverage on margins is intact and the contribution to the vegetable seeds mix remains very favorable'.

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