Gimv An Attractive Entry Point Has Opened Up

Ahead of Gimv's H1 FY24 results (23rd November 2023), we re-visit our investment case and estimate a value on Gimv's 3 most valuable stakes. As their stakes in Coolworld and Claire have been sold, the top 3 stakes in Gimv's current portfolio are Cegeka (BE), Medi-Markt (DE), and Spineart (CH). Currently, Gimv trades at a discount of 13.7% and 23.3% to our est. NAVps and TEVps of €45.6 and €51.4 respectively. This stands in contrast to the 5yr average premium of 2.4% to our estimated NAVps. Also, Gimv's portfolio consists of fast growing companies (bolt-on acquisitions) that maintain profitability during FY23, with low leverage, conservative valuation (significant/consistent uplifts realised on exits). GIMV operates with an investment team that is both experienced and diverse. With a potential peak in interest rates behind us, we consider the recent price weakness as an attractive buying opportunity for 2 reasons: potential for discount contraction and strong dividend yield (6.6% for FY24E). We reiterate our BUY rating and €51.0TP.