Jefferies starts D'Ieteren with 'buy' on discounted access to Belron

D'Ieteren SA

15/09/2022 10:05

** Jefferies initiates coverage of D'Ieteren  IETB.BR  with
"buy", saying the Belgian investment firm gives access to
Belron's "success story" at a 60% discount to market value
    ** D'Ieteren owns 50% of Belron, a market leader in vehicle
glass repair, replacement and recalibration
    ** Belron, which accounts for 31% of D'Ieteren's pro-forma
proportionate sales and 55% of its operating profit, strongly
improved EBIT margin from 5.4% to 17.5% between 2017 and 2021,
the broker says
    ** Jefferies adds recently-acquired TVH Parts and PHE are 
"new growth engines", driving earnings momentum
    ** It forecasts 2022 adjusted profit before tax group share
up by 45% (against guidance of above 40%) and sees annual growth
of 18% to 1.3 billion euros in FY 2025, while guidance expects
above 950 million
    ** Among the five analysts covering the stock, five rate it
"strong buy" or "buy"


($1 = 1.0023 euros)

 (Reporting by Olivier Cherfan)
 ((olivier.cherfan@thomsonreuters.com))