Ovs takes a breath after the collapse yesterday, April 20th. At 11.00am, the apparel company's stock was up about 8% to $3,664, outperforming both its sector benchmark (+0,38%) and mid-cap (+0,16%).
A rebound that allows you to recover part of the losses incurred in the previous session, when Ovs shares lost 32,1% reaching its historic low, with 38 million pieces changed hands, equal to 16,7% of the capital, compared to a daily average of 828.
At the cause of the crash, the reaction of investors ai accounts published yesterday by the company. In detail, 2017 sales rose by 12% to 1,525 billion euro (+12%), the ebitda amounted to 196 million (+5,3%) and the adjusted net result was 106,5 million ( +16%), while reported net profit amounted to 5 million. The market share in Italy reached 7,84% (+0,47%) compared to January 2017 and the adjusted net financial position amounted to 317,9 million.
Apparently all is well, but it was above all what disappointed the market the decision of the board of directors not to propose any dividend to proceed with the renovation projects. During the conference call, CEO Stefano Beraldo explained that the decision not to distribute the dividend has nothing to do with the company's financial problems, but is due to the desire to create reserves and value. Management also acknowledged that the start of 2018 was characterized by a difficult market environment but added that competitors are in the same situation.
Explanations that evidently did not convince investors who also took into account Ebitda and adjusted Ebit which, although positive, were lower than consensus.
Kepler Cheuvreux analysts called the results weak, noting the absence of a dividend (the expectation was for a coupon of 0,15 euros per share) and cut the target price from 6,20 euros to 5,50 euros, confirming the Buy recommendation.
A similar choice also for Credit Suisse, which reduced the target price to 3,90 euros from the previous 6,40 euros, confirming a Neutral opinion. The consensus on the price collected by Bloomberg is equal to 6,28 euros, with 8 recommendations divided into 6 Buys and 2 Holds.
