An excellent first half for Saint-Gobain, Equity trading strategy

Saint-Gobain is a world leader generating 73% of its turnover internationally, which designs, produces and distributes building materials. The group has 800 production sites and employs more than 167,000 people with the motto “making the world a better home”.

During the presentation of its results on July 27, Saint-Gobain reported an exceptional first half. Turnover is up 15.1% over one year. At actual data, it reached a new record at 25.48 billion euros, above the 25.2 billion estimated by analysts. Operating income is up 17.5% to 2.79 billion, with a margin of 11%. Gross operating surplus (Ebitda) increased by 13.4%, to a record level of 3.68 billion euros. Net profit rose 32.8% to 1.72 billion.

This fine performance reflects the measures taken as part of the “Grow & Impact” plan and the good momentum of all the group’s segments, which all posted double-digit organic growth, driven in particular by the renovation in Europe and construction in the Americas and Asia.

In the current environment, with accelerating inflation, Saint-Gobain anticipates an increase in its energy and raw materials costs of nearly 3 billion euros in 2022 compared to 2021. This inflation concerns both raw materials, transport and the cost of energy, especially in Europe.

Nevertheless, Benoit Bazin, Managing Director of Saint-Gobain, is confident in the future and said: ” Over the next few quarters, we are ready to adapt with agility to the consequences of rising interest rates, inflation and the geopolitical and energy situation in Europe and, despite this context, I am confident in the outlook. 2022, which targets further growth in operating income in 2022 compared to 2021 at comparable exchange rates “.

Since its high point reached on January 12, 2022 at 67.12 euros, the Saint Gobain share has declined within a medium-term downward channel.

The lower part of the downward channel will give rise to a rebound of 26.4% on March 7, 2022 between 45.76 and 57.87 euros.

A new rebound attempt has been in place since July 5, the objective of which could well be the upper part of the downtrend channel, located at 51.56 euros, a potential gain of 20.3%.

Given this situation, we therefore propose a purchase on a decline at the level of the 20-day moving average at 42.84 euros to target 51.56 euros. We will place a stop loss order at 40.35 euros.

If successful, the gain would be 20.3% for a risk of loss of 5.8%.

Promotional recommendation.

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