Avolta : Looking attractive again: raising our recommendations
Avolta notes have somewhat underperformed the 'BB' segment since the beginning of the year despite a solid set of 2025 results and very limited direct exposure to the Middle East (around 3% of sales). Apart from the shortest dated notes (2027 and 2028), we believe their yields have regained attractiveness, now offering pick-up of 30 to 40 bps versus the average for 'BB' bonds and 10 to 20 bps versus the average for 'BB+' bonds (lower end of the group’s rating spectrum). This is relatively unusual and, in our view, already factors in the potential indirect risks of the Middle East conflict on growth. For although these risks bring their share of uncertainties about the final 2026 results, we think the group has the wherewithal to weather a slowdown without significantly jeopardising its credit quality. We are therefore upgrading our recommendations to Buy on the 2031 and 2032 bonds.Dufry is a travel retail company. Co. operates over 1,650 shops worldwide. Co.'s shops are either duty free or duty paid shops, located in airports. Co.'s product categories include: Perfumes and Cosmetics; Confectionery, Food and Catering; Wine and Spirits; Watches, Jewelry and Accessories; Tobacco goods; Fashion, Leather and Baggage; Literature and Publications; Electronics; and Toys, Souvenirs and other goods.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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