Edison Investment Research Limited
Edison Investment Research Limited: Kendrion (KENDR): Initiation - Energised by electrification
20-Apr-2021 / 07:00 GMT/BST
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London, UK, 20 April 2021
Kendrion (KENDR): Initiation - Energised by electrification
Kendrion is a global player in high-quality electromagnetic systems that optimise safety, performance and comfort in
automotive and industrial applications. The coronavirus pandemic creates a short-term uncertain market environment but
the underlying demand for Kendrion's products is strong and it will benefit from multiple long-term disruptive trends,
such as autonomous driving, electrification, emission reduction and industrial automation. Its valuation shows a
discount to peers, which should gradually vanish when company targets are met.
We value Kendrion at around EUR28 per share, which is the average of historical multiples (EUR28), DCF (EUR29) and peer
comparison (EUR26). Higher revenues and margins will result in higher cash flows over the next few years supporting our
DCF valuation. Kendrion is valued at a discount to peers of 11% on 2022e EV/EBITDA, which might vanish over time as we
believe that the company will be able to accelerate growth and significantly improve margins.
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1186349 20-Apr-2021
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(END) Dow Jones Newswires
April 20, 2021 02:00 ET (06:00 GMT)