Edison Investment Research Limited
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 €28 per share, which is the average of historical multiples (€28), DCF (€29) and peer comparison (€26). 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.
All reports published by Edison are available to download free of charge from its website
About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.
Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information, please contact Edison:
Johan van den Hooven +44 (0)20 3077 5700 email@example.com
Learn more at www.edisongroup.com and connect with Edison on:
Dissemination of a CORPORATE NEWS, transmitted by EQS Group.