Redeye has initiated coverage of the investment company VEF, assigning a target value of SEK 3.2 per share under its base case scenario, according to a commissioned analysis.
The assessment is that VEF's underlying value has been overlooked by investors, despite the company having increased its net asset value by 12 percent annually since its spin-off from VNV Global in 2015. Furthermore, 90 percent of its portfolio holdings have reached break-even. In addition, the company is currently trading at a substantial net asset value discount of 45 percent.
Redeye also notes that industry dynamics have improved following several challenging years, and that VEF is now well-positioned "to capitalize on new opportunities after successfully advising its core holdings to focus on profitability, reduce debt levels through selective divestments, and initiate strategic buybacks aimed at narrowing the net asset value discounts."
The analysis also presents target values for bear and bull scenarios, at SEK 2 and SEK 4.4 respectively.
