KBC sees potential in Agfa's transformation, ups to 'buy'

Agfa Gevaert NV

29/08/2022 12:03

** KBC Securities raises Agfa-Gevaert  AGFB.BR  to "buy"
from "accumulate", saying the market is "totally misjudging" the
potential of the imaging systems maker's transformation
    ** "The ongoing transformation actions are well on track and
are expected to bring more agility and to further simplify
Agfa's operations," the broker says
    ** According to KBC, the new Agfa will focus on Digital
Print and Chemicals, Radiology Solutions, and HealthCare IT
    ** The broker expects Agfa to sell its Offset division in
the next four months, either for a cash consideration which KBC
sees at around 116 million euros ($115.35 million), or for a
transfer of part of its pension obligations to the buyer
    ** "After the sale of Offset solutions, working capital as
percentage of sales should be higher than before the transaction
as this percentage is lower in the Offset division," it adds
    ** The broker also forecasts better H2 results as additional
pricing actions come into effect
    ** The stock is up 5% at 1100 GMT

($1 = 1.0056 euros)

 (Reporting by Augustin Turpin)
 ((augustin.turpin@thomsonreuters.com))