Schaeffler (AO) | Buy | Schaeffler goes into space

研报英文原文证据摘录

Schaeffler (AO) | Buy | Schaeffler goes into space

Schaeffler Buy | Target Price: EUR9.00

Company description Management

In its automotive division, Schaeffer is a global key supplier of mechanical Klaus Rosenfeld,CEO

components for powertrain and chassis technologies while its industrial

business delivers bearings-based product for various non-automotive Key shareholders

applications. Schaeffler is investing heavily into the electrification of the Free float 23.20%

powertrain and the chassis by rolling out mechatronical product, so as to Georg F.W. Schaeffler 60.10%

continue to benefit from the automotive megatrends of emission reductions and Maria-Elisabeth Schaeffler 15.00% Union 1.70%

road safety in the future.

Investment case Valuation methodology

Schaeffler's e-mobility orders suggest it has been weathering We derive our TP using a 2:1 blend of a DCF model (average

the transformational challenge well to date, while the Vitesco annual FCF of EUR0.88bn, average cost of equity of 12.9%, 2%

deal allows it to become more of a system supplier than before, perpetual growth rate) and a peer multiple approach (P/E of

specifically in e-mobility. 7.6x).

We expect the takeover of and subsequent merger with Vitesco Our modelling includes effects related to the Vitesco takeover as

to support earnings growth and cash conversion. Mid- and long- well as announced streamlining plans.

term synergy targets allow for additional value creation, if Our estimates reflect the potential effects of US import tariffs.

realised according to plans. We expect the Forward Program Risks to our rating

aimed at streamlining the cost base to be earnings-accretive by Any downturn in the car industry would weigh on its margins

2026. and cash conversion.