Looking beyond masks, Berenberg starts GVS with 'buy' on core businesses appeal

GVS

23/01/2023 11:17

*** Berenberg starts coverage of Italy's GVS  GVS.MI  with a
"buy" rating, pointing to the appeal of its core businesses and
exposure to niche markets
        ** During the COVID pandemic investors were focused on
the firm's non-core health and safety business and demand for
its FFP3 filter masks, the brokerage says
    ** "Investors willing to revisit the case on GVS could
benefit from investing in a healthcare and life sciences-focused
company with a leading positioning in profitable market niches,"
Berenberg says
    ** It notes GVS benefits from a "unique" positioning within
the filtration market, pointing to the firm's exposure to
different and specific end-segments, which are mostly resilient
to economic cycles
    ** Berenberg adds that GVS, which has a solid M&A track
record, could continue its role as market consolidator, adding
new products and technologies and expanding in new regions
    ** GVS's shares have an "appealing valuation", the broker
writes, setting its target price at 7.50 euros
    ** Among the three analysts that cover GVS, two rate the
stock "strong buy" or "buy," one rates it "hold" and no analysts
rate "sell" or "strong sell"
 (Reporting by Alberto Chiumento)
 ((alberto.chiumento@thomsonreuters.com))