Oddo BHF maintains its 'outperform' rating on Saint-Gobain shares, with an unchanged target price of 88 euros, after Saint-Gobain announced it had reached a definitive agreement to acquire FOSROC, an unlisted player in construction chemicals, for $1,025 million (or 960 ME) in cash.

Our business plan for Saint-Gobain's acquisition of FOSROC shows a 13.4% ROCE (2027) for an EV/EBITDA of 6.3x in year 3 (cost of debt at 4% and cost synergies at $39m)", the broker analyzes.

"Overall, we remain convinced that the changes of recent years have not yet been integrated at their fair value", adds the analyst, who believes that at less than 6.0x EV/EBITDA 2024, Saint-Gobain has "significant catch-up potential".

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