Berenberg sees Forsee Power's "potential to electrify the market", starts with "buy"

Forsee Power SA

13/12/2021 07:34

** "Potential to electrify the market", Berenberg says,
initiating the coverage of French electric vehicle battery
manufacturer Forsee Power  FORSE.PA  with a "buy" rating and a
EUR 12 PT
    ** "We believe that the group offers a unique, global
platform that is attractively geared to the electrification of a
targeted number of fast-growing end-markets", the broker says
    ** Berenberg says that the company's circa 1.0 billion euro
pipeline and the quality of its shareholder register give it
further confidence in Forsee Power's ability to grow its
financials rapidly and create value for its stakeholders
    ** According the broker, favourable megatrends, combined
with small market share gains, should allow revenues to grow at
a 40% CAGR in 2020-2025
    ** There is a credible path ahead for Forsee Power to
gradually improve its margins and cash flows, it says, adding,
however, that Berenberg's numbers remain below management's
targets
    ** Berenberg expects the group to break even at the EBITDA
and free cash flow levels in the second half of 2023 and the end
of 2026 respectively
    

 (Reporting by Anait Miridzhanian)
 ((anait.miridzhanian@thomsonreuters.com))