(Finance) – Analysts at Kepler Cheuvreux wrote that the offer price “seems a bit shy”following the announcement that Automation Systems (which indirectly belongs to the Investindustrial VIII fund) will launch a takeover bid on the shares Rain at a price of 14 euros per share aimed at delisting the company from Euronext STAR Milan.
The mandatory offer follows theagreement signed with Pentafinthe current main shareholder of Piovan, for the purchase of a 58.35% stake in the company’s capital, equal to 61.17% net of treasury shares.
Kepler Cheuvreux has a target price of 14.5 euros, so the offer price has a discount of -3.4%, while the Medium TP (between 3 analyses) is 15 euros.
According to the broker, the current multiples are “very interesting”: at yesterday’s closing price of 12.3 euros per share, Piovan was trading at 12.2x PE, 7.9x EV/EBITDA, 9.0x EV/EBIT 2024 with a discount of more than 30% to European capital goods with a FCF yield of 7.1%.
“All this for acompany with excellent positioning in auxiliary machinery for the processing of technical polymers (world leader with a 30% market share in both EMEA and North America), high exposure to circular economy solutions (recycled plastics), low leverage (0.3x NFP/EBIDA 2024), very high cash conversion and ROIC (2024 at 24.9%) – reads a note – The ROIC is in fact the best in class in our capgoods coverage in Italy”.
At the offered price of 14 euros per share, Piovan would be valued at 13.8x PE, 8.9x EV/EBITDA, 10.1x EV/EBIT 2024, with a “substantial” discount to SXNP index (STOXX Europe 600 Industrial Goods & Services) which trades at 19.7x PE, 10.5x EV/EBITDA, 13.7 x EV/EBIT 2024.