Veoneer (Hold, TP: SEK320.00) - Trading 7% below Qualcomm’s bid

Ahead of Veoneer’s Q3 results, we have cut our 2021e sales and EBIT by 9% and 17%, respectively, to reflect recent IHS estimate reductions owing to OEM production cuts due to supply-chain issues, while our 2022–2023e sales are broadly unchanged. Thus, we are 9% below Infront consensus on 2021e sales, and expect Veoneer to lower its 2021 guidance with its Q3 report. That said, we still believe Qualcomm’s non-binding cash offer to acquire Veoneer at USD37/share will become a formal bid before Veoneer’s shareholders vote for the Magna bid on 19 October and thus reiterate our HOLD and SEK320 targe...

Veoneer (Hold, TP: SEK320.00) - Qualcomm has Arrived

On 5 August, Qualcomm made an all-cash offer to acquire Veoneer at USD37/share. Although we believed Qualcomm would have made a move earlier if it was interested in Veoneer, it seems the most logical suitor to compete with Magna’s previous bid of USD31.25/share to secure access to Arriver. We see it as unlikely at this point that Magna or other suitors would present competing bids, but do not rule out a transaction where Qualcomm acquires the Arriver programme and a separate entity acquires the non-Arriver businesses. We have raised our target price to SEK320 (270) to reflect Qualcomm’s offer ...

Veoneer (Hold, TP: SEK270.00) - Magna bid attractive enough

Following Magna’s offer, corresponding to a USD3.8bn equity value for Veoneer, we have downgraded to HOLD (BUY) with a SEK270 (300) target price to reflect that we believe the deal terms are attractive enough and see a high likelihood of transaction approval. We also see logic for the approach, although we are at an early inflection point of the L2+ ADAS mass rollout phase, where we believe Veoneer is in a sweet spot for 20%+ medium-term organic growth.

Seafood - Fat Trout Weekly

Seafood - Fat Trout Weekly

Seafood - Fat Trout Weekly

Seafood - Fat Trout Weekly

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