Re-instate with Buy rating; with scenarios that highlight five upside risks

Research evidence excerpt

Re-instate with Buy rating; with scenarios that highlight five upside risks

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D'Ieteren Group

Re-instate with Buy rating; with scenarios

that highlight five upside risks

Reinstating Coverage: BUY | PO: 217.00 EUR | Price: 175.10 EUR

Five upside risks, re-instate coverage with a Buy rating 20 July 2026

We deep dive each division of D’Ieteren focusing on its largest and highest quality asset Equity

Belron, whilst providing five scenarios analyses including Belron margin upside, TVH

margin recovery, bolt-ons M&A (PHE & TVH) plus upstreaming of Belron cashflow. Tim Ramskill, CFA >> Research Analyst

MLI (UK)

1) Can Belron extend track record & deliver 2028 targets? +44tim.ramskill@bofa.com20 7996 3050

We view Belron as a high quality business with a 2026E ROIC of 45%, FCF conversion of Virginia Montorsi >>

c90% and 2025-28E PBT CAGR of 17%. A 7% revenue CAGR is supported by dominant Research Analyst

#1 positions, deeply entrenched insurer relationships, the non-discretionary spend MLI44 20(UK)7996 2921

characteristics (once every 23 years) and pricing power (ADAS penetration and product virginia.montorsi@bofa.com

complexity). Scenarios show operational leverage could drive margins above target and

scope for €1.8bn of Belron cash to flow to group by 2030E (20% of market cap).

Stock Data

2) Will Auto, PHE and TVH deliver improved performance?

We see a somewhat mixed picture, with PHE on a pathway of sustained execution Price 175.10 EUR

(2025–28E PBT CAGR of 16%), TVH stabilising (CAGR 7%) but Automotive likely to Price Objective 217.00 EUR

remain under pressure (CAGR -13%). Our 2028E Automotive EBIT is 11% below Date Established 20-Jul-2026

consensus. That said, we provide scenario analyses covering: i) bolt-on M&A potential Investment Opinion B-1-7