Prysmian (AO) | Hold | Framework agreement in Greece, notice to proceed on the ELMED

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Prysmian (AO) | Hold | Framework agreement in Greece, notice to proceed on the ELMED

Prysmian Hold | Target Price: EUR133.00

Company description Management

Prysmian is the world leader in energy and telecom cables. It boasts a c. 40% Francesco Gori, Chairman

market share in submarine cables, which is the highest tech and value-added Massimo Battaini, CEO

market segment. It is also co-leader in high-tech telecom cables, including Pier Francesco Facchini, CFO

optical ones. The company has 112 plants across over 50 countries. The Key shareholders

acquisition of Draka (2011), General Cable (2018) and Encore wire were three Free float 99.68%

strategic and accretive deals. Clubtre 0.32%

Investment case Valuation methodology

In submarine cables and HV underground, the outlook remains Our DCF (WACC: 8.3%, TG: 3.0%, terminal reported EBIT margin:

supportive. Prysmian is the global leader with a 35-40% market 10.5%) points to EUR122.

share. Good pipeline in interconnectors and offshore wind, led A fair value based on European/US electrification peers points to

by renewables and electrification. EUR142/147.

The outlook in Digital Solutions should be supported by Free cash flow yield is less attractive than in the past.

hyperscalers' capex related to datacenters. The outlook in low Risks to our rating

voltage is exposed to cyclicality, mainly in the US market, but Execution delays or hiccups in submarine and HV underground,

also supported by datacenters. Mid- and high voltage are slower-than-expected ramp-up of the offshore wind

supported by structural growth drivers. The acquisitions of installations both in Europe and globally. More pressure in

Encore Wire and Channell are sensible strategic moves. telecom. Cyclical pressure might affect the low-voltage