Indus Holding: New buy recommendation despite reduced forecast

In the second quarter, due to the pandemic, Indus Holding will have amortized goodwill of 32 million euros. Sales fell by 15 percent to 373 million euros. The EBIT drops from +38 million euros to -34 million euros. The bottom line is that Indus posted a loss per share of 1.98 euros (previous year: +0.72 euros). However, the consensus had expected EUR -2.09.

For the year as a whole, Indus is expecting EBIT between EUR 0 and EUR 20 million according to the quarterly figures; previously the forecast was between EUR 85 million and EUR 95 million.

The analysts at Independent Research expect Indus to recover operationally in the second half of the year. The portfolio optimization should have an effect.

For 2020 the analysts forecast a loss per share of 1.20 euros (old: -0.43 euros). In 2021 there should be a profit per paper of 2.35 euros.

As before, the target price for Indus shares is 33.00 euros. The vote was raised from “hold” to “buy”.

The share has recently been under pressure and has moved away from its target price. Therefore, upgrading is possible.

Today the Indus share gains 0.9 percent to 28.85 euros.


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