Berenberg starts Novem with 'buy' on strong market position

Stabilus SE

24/08/2021 07:27

** Berenberg starts Novem  NVM.DE  at "buy", says the group
is a global market leader with 46% market share in high-quality
trim and decorative function elements for premium car interiors
    ** This, combined with season-independent growth and
technical know-how that yields low scrap rates, lets Novem get
more stable returns than other EU car suppliers, Berenberg says
    ** It adds Novem's sales should be helped by further market
gains as volumes recover after the pandemic and new players
enter the premium market, especially in the electric car segment
    ** "We also believe Novem should benefit from the withdrawal
of a competitor, which should bring about EUR 30 mln of
additional revenue," the broker says
    ** Berenberg adds Novem stock trades 22-29% below rival car
parts makers Norma and Stabilus  STAB.DE , and will remain at a
discount of 8-14% even if it reaches the broker's target price
of EUR 28

 (Reporting by Zuzanna Szymanska)
 ((zuzanna.szymanska@tr.com))