Azelis A deep dive in to organic and acquisitional growth

Azelis proved its resilience over the past years with organic revenue CAGR of 6.6% (2020-2024) combined with robust margin expansions. Therefore, Azelis could be a safe haven in volatile times, supported by their strong geographical and end-market diversification. Nevertheless, we believe that CSS's organic revenue growth expectations are too optimistic. On the other hand, the upside from acquisitions is undervalued. We provide a detailed overview on the acquisitional revenue growth, which we lowered. Fundamentally, the free float doubled, liquidity tripled and the discount compared to IMCD quadrupled. This is fundamentally illogical and offers an opportunity, yet highlight the dissatisfaction of the market on how the placements happened. Our adjustments result in a target price of €27 per share, and we reiterate our Buy rating, as the current market levels offer an attractive entry point, in line with the price of the placement.