Growth optionality at a more reasonable price; upgrade to Neutral

研报英文原文证据摘录

Growth optionality at a more reasonable price; upgrade to Neutral

rged towards our

12/26E 0.30 0.30 0 0.46

more conservative view, reducing downside asymmetry.

12/27E 0.48 0.51 8 0.68

12/28E 0.91 0.91 0 1.04

Core risks remain, but are increasingly balanced by non-auto opportunities

The core business continues to face challenges related to automotive exposure, Juan Perez-Carrascosa

particularly E-Mobility profitability and margin quality. However, following the recent de- Analyst

juan-perez.carrascosa@ubs.comrating, we believe these risks are more appropriately reflected in the share price.

+34-91-436 9025

Meanwhile, partnerships and initiatives across robotics, defence, drones and space are

expanding Schaeffler's addressable non-auto opportunity set, providing growing Patrick Hummel, CFA

strategic optionality beyond its traditional Automotive and Industrial businesses. Analyst

patrick.hummel@ubs.com

+41-44-239 52 54

Valuation: risk-reward now more balanced, upgrade to Neutral

David LesneWe make modest changes to our estimates, primarily in FY27E, to reflect incremental

Analyst

structural actions (+8% EPS vs. prior). At ~11x adjusted P/E and ~5.5x EV/EBITDA, the david.lesne@ubs.com

shares continue to trade at a premium to peers, but no longer discount aggressive +33-14-888 3034

execution and/or significant growth optionality. With our price target increasing to €8.1,

we believe the valuation now more appropriately balances residual execution risk

against the medium-term upside opportunity, supporting a Neutral stance. We make no

changes to our valuation methodology, which remains based on two DCFs: one for the

non-core businesses (€2.4ps) and one for the core business (€5.7ps, from €5.4), using an

11% CoE and terminal growth rates of 2% and 1%, respectively.