'Rare entry point': Berenberg raises ID Logistics to 'buy'

Id Logistics SAS

18/01/2022 07:54

** Berenberg raises ID Logistics  IDLA.PA  to "buy" from
"hold", saying the current weak share price offers investors a
"rare" entry point into the France-based logistics company
    ** "Shares have been trading weaker year to date despite
there being no change to the group's resilience, its attractive
pure-play position and the healthy growth on offer," the broker
says
    ** It flags the company's "remarkable" 2021, expecting it to
maintain growth trajectory due to low outsourcing penetration
rates, a 95% contracts renewal rate and ability to pass on cost
inflation to customers
    ** "We keep our margin forecast unchanged and expect IDL to
reach 4.2% in FY21E," the broker says, adding this is 10/30
basis points (bp) ahead of consensus and management guidance
respectively
    ** The company benefits from "strong competitive
positioning", Berenberg adds, praising its "flexible,
asset-light" business model and "solid" balance sheet and cash
flow generation
    ** "We identify 30% upside to our 2023E EPS forecast
stemming from M&A optionality (leverage ratio at 3.0x)" -
Berenberg 
    ** Out of five analysts that cover ID Logistics, three rate
the stock "strong buy"/"buy", and two rate it "hold" 

 (Reporting by Olivier Sorgho in Gdansk)
 ((Olivier.sorgho@thomsonreuters.com))