Oddo BHF maintains its 'outperform' rating on Sixt shares, with a price target lowered from €130 to €114.

The analyst reports that Sixt's quarterly results came in at the lower end of guidance, with sales of €780.2m, up 12.3%, and EBT of -€27.5m (vs. guidance of between -€15 and -€28m).

"This underperformance could be explained mainly by increased depreciation due to lower residual values on electric vehicles and used cars on the US market", the broker explains in substance.

Against this backdrop, Sixt has lowered its guidance for the 2024 financial year, with EBT in the range of ME350 to ME450 (vs. ME400 to ME520 previously). For its part, Oddo BHF is targeting an EBT 2024 of 446 ME, while the consensus is 464 ME.

The downward revision of full-year forecasts is obviously bad news, but we believe that the negative impact of the residual value will be concentrated in the first half, and we remain convinced that the Group should be able to offset these negative effects over the coming quarters", concludes the analyst.

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