Tarkett: A bit of confusion around the price for the Lexmark deal
Tarkett: (NEUTRAL, Fair Value EUR23 vs. EUR24 (-8%))A bit of confusion around the price for the Lexmark deal
There has been some confusion yesterday regarding the price paid for the Lexmark acquisition. We understand it was due to 1) the particularly strong profitability of Lexmark; probably 50bps to 100bps above Tarkett EBITDA margin, 2) the net debt within the consensus, approx. EUR100m too optimistic (on 27/08/18). We have been surprised too and have decided to adjust our cash flows estimate for H2 2018. Obviously more debt means lower valuation. We keep our Neutral rating for now, but adknowledge the Lexmark acquisition is an interesting step in the right direction.
Tarkett is a global flooring company, providing a large range of flooring and sports surface solutions to business and residential end-users. Co. is organized in four segments: Europe, Middle East and Africa (“EMEA”); North America; Commonwealth of Independent States (“CIS”), Asia Pacific (“APAC”) and Latin America; and Sports Surfaces.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.