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On Friday, Kepler Cheuvreux adjusted their stance on Societe BIC SA (BB:FP) (OTC: BICEY), downgrading the stock from Buy to Hold and reducing the price target to €65.00 from the previous €75.00. The revision was prompted by anticipated weak first-quarter sales, attributed to a slowdown in the United States and challenging comparisons in other regions.
The firm’s analysts cited specific concerns for BIC’s performance in the US market, which accounts for approximately 40% of the company’s sales. They highlighted that new import tariffs are expected to significantly affect the company’s Shaver and Lighter divisions. Additionally, consumer anxiety and inflationary pressures were noted as potential factors that could suppress demand, even for non-discretionary products.
Kepler Cheuvreux also revised their financial outlook for Societe BIC, leading to a 6% reduction in their adjusted earnings per share (EPS) forecasts for the years 2025-2027. The firm expressed caution due to the current headwinds facing the company and the resulting lack of visibility into future performance.
The analysts elaborated on their decision to downgrade the stock, stating, "We expect BIC’s US operations to be significantly impacted by new import tariffs, particularly in its Shaver and Lighter divisions. Consumer anxiety and inflationary pressures are also likely to dampen demand, even for non-discretionary products. As a result, we lower our sales and profitability forecasts, resulting in a 6% cut to our adj. EPS forecasts for 2025-27E."
In light of these factors, Kepler Cheuvreux’s revised price target of €65.00 reflects a more cautious valuation of Societe BIC’s stock, down from the previous target of €75.00. The firm’s downgrade to a Hold rating indicates a neutral outlook on the stock’s performance in the near term.
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