Lisi (AO) | Buy | Preview H1: topline momentum and margin expansion to continue

研报英文原文证据摘录

Lisi (AO) | Buy | Preview H1: topline momentum and margin expansion to continue

Lisi Buy | Target Price: EUR75.00

Company description Management

Lisi is a global leading manufacturer of fasteners and assembly components for Gilles Kohler, Chairman

the aerospace (70% of sales) and automotive (30% of sales) industries, following Emmanuel Viellard, CEO

the planned disposal of its Medical activities. The company is a tier-one supplier Raphaël Vivet , CFO

to major OEMs including Airbus, Safran, Boeing and leading global auto Key shareholders

suppliers. Free float 47.40%

Companie Industrielle de Delle 44.20%

Viellard Migeon & Cie 6.70%

Treasury shares 1.70%

Investment case Valuation methodology

Lisi is a well-managed but cyclical industrial company Our 12-month forward TP at EUR75 per share implied a 2027 PE

specialised in fastening solutions and mostly exposed to the ups of 20x.

and downs of the civil aerospace and auto industries. The group This valuation is backed by our DCF approach, using a WACC of

sold its Medical unit to a private equity sponsor. 8.5%. It continues to reflect a strong cyclical recovery in margin

Inflation has hindered the pace of a post Covid earnings and FCF, as the group is implementing price hikes, reaping the

recovery. It's now easing just aerospace OE volume growth is rewards of past productivity-enhancing investments.

reaccelerating producing high operating leverage. Risks to our rating

A buyback offered shareholders a liquidity window and an EPS Recent margin recovery has squashed concerns about sustained

upgrade. The delivery of adequate returns has been postponed pricing pressures, future progress set to match progress in

but rising aerospace production rates and easing of inflation are production rates.

providing solace.