Robust funding, promises in locks & safety
TARGET CHANGE
CHANGE IN TARGET PRICE
€ 2.60 vs 3.17 -17.8%

Our target price is mechanically cut by allowing for a c. 23% drop in 2020 revenues and a best guess at zero profits. The small industrial conglomerate entered the COVID-19 crisis with a very strong balance sheet and a cool-headed owner and CEO. It should rebound as quickly as its underlying markets, notably the promising security/safety ones.


CHANGE IN EPS
2020 : € 0.00 vs 0.21 -98.5%
2021 : € 0.16 vs 0.25 -35.1%

2020 earnings reflect the fact that a near 25% drop in revenue cannot help absorb fixed costs. We see only a partial recovery in 2021.


CHANGE IN DCF
€ 2.66 vs 3.86 -31.2%

Our DCF is impacted by postponed growth and slower long-term expectations. The long-term growth expectations do not allow for a widening of EBITDA margins in rather competitive industries.