OVS (1K) | Buy | A good start, with more to come

研报英文原文证据摘录

OVS (1K) | Buy | A good start, with more to come

. 0.43 0.49 0.55

Consensus EPS 0.4 0.5 0.5

largely seasonal and expect the impact to be fully absorbed over the the year. Net dividend 0.16 0.18 0.20

Deconstructing the forecasts FY to 31/01 (EUR) 01/27E 01/28E 01/29E

We leave our revenue forecasts broadly unchanged while raising our EBITDA pre- P/E adj and ful. dil. 14.5 12.8 11.3

IFRS 16 estimates by c.3-4% across the forecast period. The revision is primarily EV/EBITDA 5.9 5.5 5.1

driven by a stronger contribution from the core business, which delivered EV/EBIT 12.1 11.1 10.1

FCF yield 6.3% 7.0% 7.9%meaningful margin expansion in Q1 26 and demonstrated a higher level of Dividend yield 2.6% 2.9% 3.2%

operating leverage than previously anticipated. ND(F+IFRS16)/EBITDA 2.7 2.6 2.4

We now forecast a 50bps expansion in EBITDA pre-IFRS 16 margin for FY 26, with Gearing 12.0% 6.8% 1.6%

ROIC 9.8% 10.3% 10.8%

EBITDA reaching EUR 243m. This includes a slightly more than EUR 4m EV/IC 1.6 1.6 1.5

contribution from Goldenpoint, while the underlying business is expected to

Sector Most Pref. Sector Least Pref. deliver EBITDA growth of c.11.3%. Adidas Group Puma

We now forecast FCF of EUR 99m, up from our previous estimate of EUR 93m,

driven by higher EBITDA and a more favourable working capital profile. As a result,

we expect adjusted net cash (excluding IFRS 16 liabilities and derivatives) to reach

EUR 113m by year-end.

Positive stance maintained with EUR7.0 TP (5.9)

We slightly reduce our WACC assumption from 9.7% to 9.6%. Combined with our

higher earnings forecasts and better NWC, this leads us to raise our target price to Filippo Piva

EUR7.0 (from EUR5.9), while reiterating our Buy rating on the stock. Equity Research Analyst

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