Schaeffler (1K) | Hold (Buy) | Lots of call options attached to the case

研报英文原文证据摘录

Schaeffler (1K) | Hold (Buy) | Lots of call options attached to the case

Schaeffler Hold | Target Price: EUR9.20

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 applications. Schaeffler Key shareholders

is investing heavily into the electrification of the powertrain and the chassis by rolling Free float 23.20%

out mechatronical product, so as to continue to benefit from the automotive Georg F.W. Schaeffler 60.10% Maria-Elisabeth Schaeffler 15.00%

megatrends of emission reductions and road safety in the future. Union 1.70%

Investment case Valuation methodology

n Schaeffler's e-mobility orders suggest it has been weathering n 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 EUR0.9bn, average cost of equity of 12.9%, 2%

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

before, specifically in e-mobility. 7.6x).

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

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

and long-term synergy targets allow for additional value n Our estimates reflect the potential effects of US import tariffs.

creation, if realised according to plans. We expect the Forward

Risks to our rating Program aimed at streamlining the cost base to be earnings-

n Any downturn in the car industry would weigh on its margins accretive by 2026.