BIC: Good set of Q4 numbers and improving trends are fairly valued
NEUTRAL, Fair Value EUR95 (+5%)
BIC was again able to gain market share in all Consumer Products activities despite fierce competition in Stationery and Shavers for example. Management expects it can maintain these trends in 2014 against a good start of the year (Q1 13: flat growth LFL), especially in Stationery. Although we expect a more favourable momentum both at the top line (we raise our LFL growth forecast to +5% vs. +3.5% previously) and profitability in 2014, we think they are well priced-in as the stock now trades at 2014e EV/EBIT of 10.7x, implying a 16% premium to its 2004-14 historical average.
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