Compagnie des Alpes: Ready for acceleration in theme parks, Berenberg starts with "buy"

Compagnie des Alpes SA

27/11/2019 07:50

** Berenberg starts French ski resort and theme park
operator Compagnie des Alpes  CDAF.PA  with "buy" and price
target of EUR 39.40
    ** "We like CDA for its resilient and cash-generative ski
lift business, which helps to support continued investment in
the higher-growth Leisure Destinations segment", it says
    ** The brokerage adds the company has been able to
outperform its market over the past five years
    ** "Theme parks are CDA's growth engine", says Berenberg and
adds it expects 5.7% FY 2019-22 sales CAGR (compound annual
growth rate)
    ** "We believe the stock price does not reflect this solid
midterm outlook as investors have been too heavily focused on
the recent FCF (free cash flow) decline following increased
investments", adds the broker
    ** It expects capex normalisation to drive a strong
acceleration in cash generation in the coming years

 ((joanna.wodzicka@tr.com))