Oddo BHF starts 'stronger than ever' D'Ieteren with 'outperform'
07/04/2022 11:59
** Oddo BHF initiates coverage of D'Ieteren Group IETB.BR
with "outperform" rating and a target price of 205 euros,
calling the Belgian car distributor "stronger than ever"
** The broker says that while investors were previously
sceptical of D'Ieteren's performance as a holding company, the
perceived reinvestment risk will trend lower thanks to its
active capital allocation with TVH Parts and PHE acquisitions
and the improved performance of its notebook company Moleskin
** The most attractive part of D'Ieteren's equity story is
Belron, Oddo adds, calling it "the jewel in the portfolio"
** It says the leading vehicle glass repairer is a high
growth free cash flow machine, whose ongoing transformation
should lead to best-in-class margins
** The broker estimates that attractive valuation, positive
business trends and solid financial profile should add more than
150 million euros to the group's adjusted profit before tax by
2023
** D'Ieteren, down around 10% YTD, was recently included in
Belgium's blue-chip index BEL 20 .BFX
** Four analysts covering the stock all rate it "strong buy"
or "buy", according to Refinitiv data
(Reporting by Elena Vardon)
((elena.vardon@tr.com))