Beneteau shares drop 10% as Bernstein downgrades on weak 2025 outlook

Investing.com -- Beneteau shares dropped more than 10% on Friday after Bernstein downgraded the stock to "market-perform" from "outperform," citing concerns over 2025 revenue and margins.

The French boatmaker reported a 29% revenue decline in 2024, falling to €1.03 billion. Operating profit came in at €75.9 million, slightly above expectations, but the company’s 7.3% operating margin was at the lower end of its guidance. 

Its U.S. segment posted a €21 million operating loss, exceeding earlier estimates.

Bernstein warned of an uncertain outlook, saying “The market context offers little in the way of visibility, marked by increased promotional intensity, difficulties in the catamaran market, and uncertainties linked to the introduction of customs duties in the US.”

The brokerage slashed its earnings forecasts, saying, “We are lowering our EPS expectations by 40% for 2025 and by 28% for 2026.” 

It now expects 2025 EPS at €0.44, down from €0.74. Beneteau itself projects a 5% to 10% decline in retail demand and ongoing destocking of €50 million to €100 million, concentrated in the first half of the year.

A €235 million sale of its Bio Habitat division boosted Beneteau’s net cash to €357 million, though still below consensus estimates. 

The company announced a total dividend of €1.43 per share, including an exceptional interim payout of €1.21 scheduled for March 27.

Bernstein cut its price target to €12.10 from €13.40, cautioning: “The risk of a downward revision of expectations is significant, which leads us to adopt a Market-Perform rating.” The brokerage does not expect a recovery before the second half of 2025.

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