FACC confirmed at HOLD, TP EUR 8.60 - The aviation sector is still priced for a fast and strong recovery
We confirm our HOLD recommendation and TP of EUR 8.60 for FACCWe acknowledge the return to growth momentum with a guided top-line increase of about 10% in FY 22e which, in our view, should stay robust in the coming years.
Nevertheless, our fair value calculations are already based on a very strong rebound of operating profitability which yet has to materialise.
In addition, the valuation with which is about in-line to somewhat above peers (EV/EBITDA 23/24e of around 10x, EV/EBIT 23/24e around 20x) does not provide an impetus for a heftier re-rating at the moment either, in our view.
FACC AG is an Austria-based company engaged in the aerospace and defense industry. The Company specializes in the manufacture of aircraft parts and components. It divides its business into three divisions: Aerostructures, Engines & Nacelles, and Interior. The Aerostructures division covers control surfaces, fairings and wing components. The Engines & Nacelles division provides engine and nacelles components. The Interior division offers interior design services for commercial aircraft, business jets/private jets, freighters and helicopters. The Company's services range from on-site support with field engineering, spares service, and repairs to assembly training of customer staff for components and systems delivered by the Company. The Company's products are manufactured at four production sites in Austria.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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