UBS sees revenue boost for ALSO Holding from Westcoast acquisition

Also Holding AG

01/04/2025 10:43

** UBS initiates coverage of Swiss tech firm ALSO Holding ALSN.S with "buy" as it sees accelerating revenue growth in 2025 following the Westcoast acquisition

** The brokerage says the deal, closed in March, will add EUR 40 billion ($43.3 billion) in sales, making ALSO the second largest IT distributor in Europe

** It expects a revenue rebound driven by easy comparisons and the PC refresh cycle, as more than 25% of the company's revenue is tied to PCs

** The company's EBITDA margin is set to drop slightly in 2025, but it should expand to 2.5% by 2029 through a positive mix shift and potential cost optimisation, UBS says

** The stock is up 7.9% as of 0939 GMT

($1 = 0.9240 euros)

 (Reporting by Bernadette Hogg)

 ((bernadette.hogg@thomsonreuters.com))