Oddo BHF reiterates its Outperform rating on the stock but lowers its price target to 4.50 E (from 5 E) following the release of the 2025 results.

According to Oddo BHF, HighCo reported 2025 results yesterday that were down but in line with expectations.

Following the conference call held yesterday morning, the analyst notes that the consumer goods market returned to growth in 2025, rising by 2% with a normalization of volumes (+0.9%), a favorable mix effect (+0.4%), and moderate inflation (+0.6%).

Oddo BHF estimates that this recovery is primarily driven by e-commerce and convenience formats (+5% each).
"The Retail Activation division confirms its role as a growth engine (63% of gross margin), posting organic growth of 7%, driven by HighCo Nifty and HighCo Merely. Retail Media (16% of gross margin) is establishing itself as a sustainable strategic pillar in a market estimated at over 1 billion euros."

Oddo BHF is revising its 2026 margins, now forecasting an operating margin (MOP) excluding AGA charges of 12.4% (versus 13.6% previously), and an operating margin including AGA charges of 9% (versus 9.4% previously) on an unchanged gross margin of 78.7 million euros (+18%).

The analyst anticipates a more robust growth profile over the medium term, driven by the structural momentum of the Activation division, the rise of digital, and the strengthening of Retail Media, which position HighCo on a path of progressive and sustainable profitability improvement.