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OPTICAL & EYEWEAR EL-GVNV deal: how synergies could impact Safilo and Hoya in 2022
OPTICAL & EYEWEAREL-GVNV deal: how synergies could impact Safilo and Hoya in 2022
We reiterate our Buy rating but cut our DCF-derived target price to CHF143 from CHF162. We have reduced our adj. EPS ests. by 6% for 2022, 5% for 2023, and 3% for 2024, due to Temenos’ announcement to move its business model to subscriptions and FY21 results slightly below expectations due to more service work handed over to systems integrators. In addition, we have increased our company beta to 1.02 from 0.96 on the back of the transition to subscriptions, which will have a negative impact on free cash flow in the short-term but will increase the share of recurring revenues to 85% from 65% by 2025.
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Bryan Garnier
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
Cedric Rossi
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