While some listed companies have had a disparate stock market history since the start of the Russian-Ukrainian conflict, Groupe Gorgé proudly posted a performance of +30%.
Specialist in high-tech professions in the field of defence/security, energy and aerospace, the group is today a benchmark player in these cutting-edge sectors (drones, robotics, engineering and protection systems).
This trend is also based on the fact that the industrial group has taken major steps in its strategic refocusing and the simplification of its activities in 2021.
Crossing new milestones
The first phase dates from last December, when Groupe Gorgé severed ties with its subsidiary Prodways Group, a specialist in 3D printing, by distributing 50.6% of the company’s capital to its shareholders. In addition, this operation made it possible to generate a capital gain of 44 million euros.
At the same time, the industrial group separated from its other subsidiary, Baumert, which specializes in the manufacture and installation of doors for the nuclear sector. This market segment achieved almost no synergies with the other activities of the group and what is more, the prospects for the construction of new reactors in France would only have brought in income from 2028.
Another major fact, Groupe Gorgé very recently announced its plan to take over the company IXblue, on the basis of an enterprise value of 410 million euros. This strategic project marks a turning point in the group’s history, enabling it to become a world-leading player in cutting-edge technologies for advanced defense, space and maritime operations solutions.
Outlook and forecasts 2022
By refocusing, Groupe Gorgé benefits from increased visibility and a better profitability profile, the main objective of which is to develop the “Drone and Systems” division, which is growing rapidly, and seize consolidation opportunities in the sector. . As a reminder, these “Drones and Systems” activities represent 65% of turnover, the rest depends on the “Engineering and Protection Systems” sector. With a strong order book of almost three years of turnover, the fundamentals of Groupe Gorgé give hope for continued growth in the short, medium and long term.
Currently in a medium-term uptrend, Groupe Gorgé shares recently showed three particularly positive technical signals:
– The break of the downward slant passing through the highs which had been blocking prices since 2015;
– The crossing of the moving averages 100 and 200 days with a significant volume;
– Exceeding the key overlap (former support zone that has become resistance) of 19 euros, especially since this resistance was the upper limit of the trading range 14/19 euros (in purple on the graph).
We will place a first objective at 21.7 euros, or 14% increase, and a second at 24 euros, therefore 25% increase, with a stop at 14.4 euros, or 9% below the current price.
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