'Bekaert builds back better' - Kepler Cheuvreux starts with 'buy'

NV Bekaert SA

03/12/2021 10:24

** Bekaert's  BEKB.BR  positive risk/reward leads Kepler
Cheuvreux to initiate the Belgium's steel wire maker with "buy",
despite risk from a lagging Chinese market and high energy and
transport prices 
    ** YTD, the company has outperformed the STOXX Europe Small
200 Index  .SCXP , as the market anticipates the end of its
restructuring, the brokerage notes
    ** However, it adds, Bekaert still trades at only 4x
EV/EBITDA and 9x P/E, a 40% discount versus its historical
valuation, despite an improved return profile
    ** Shares in Bakeaert rise over 2% to about EUR 37.14 at
1023 GMT, compared to Kepler's PT set at EUR 43
    ** The brokerage expects an increased demand for tyre cord
as electric vehicles gain market share, leading to increased
demand for premium tyre cord
    ** It also sees rising demand for ropes and wires on overdue
investment in commodities and windmill farms and infrastructure
spending in the EU and North America
    ** In the long term, it adds, Bekaert could profit from its
position in hydrogen - components for electrolysers


($1 = 0.8856 euros)

 (Reporting by Kate Entringer)
 ((Kate.entringer@tr.com))