BIC: Good momentum (and high valuation) should continue throughout the yearNEUTRAL, Fair Value EUR120 vs. EUR115 (-21%)
Growth in the Consumer Business (+7.4% LFL) was clearly driven by Europe (+8%) and North America (+11%) where BIC gained market share in Lighters and Shavers. Besides the favourable volume growth, the outperformance of these markets lifted the group’s profitability given the positive geographical mix and FX impact (USD). Although we consider this momentum to be sustainable, BIC maintained its FY sales outlook (+4-5% LFL vs. BG ests at +5.7%) as well as its Consumer Business margin guidance (close to 2014s at ~21.1% vs. BG ests at 21.8%, +70bps). Our new FV at EUR120 vs. EUR115 reflects our higher FY15 estimates.
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