PROSEGUR / PROSEGUR CASH: UPSIDE, BUT NOT WITHOUT RISKS (ANÁLISIS BANCO SABADELL)
Upside with risks. BUY/BUYWe resume coverage of PSG and CASH (74% held by PSG) with a BUY recommendation for both companies (previously SELL for PSG) although with higher upside in PSG, in our view (66% of the T.P. stems from CASH), as assuming CASH (and Telefónica) current levels, the rest of the business would show +100% upside vs. our valuation. Furthermore, we believe PSG is a more defensive option vs. CASH, as it offers higher geographical and business diversification, lower exposure to Argentina (24% of EBIT vs. 31% CASH BS(e)) and higher upside (+29% vs. +20% CASH), in addition to a share buyback programme of 10% of capital (vs. 3 CASH) until Nov’23 that could underpin the share price. We set our T.P. for PSG at € 3.13/sh. (+29.4% upside/ EV/EBIT’22e 11.2x and P/E’22e 14.2x / +3%/+12% vs. peers) and that of CASH at € 1.00/sh. (+20.2% upside / EBIT’22e 9.1x and P/E’22e 11.0x /-13%/-3% vs. peers). In our view, the deteriorated situation Argentina is facing (9% of PSG’s T.P.; 10% of CASH) would be already priced in. Since the IBEX’s highs in February (pre Covid-19), PSG has slid -37% and CASH -45% (vs. -15% IBEX).
Prosegur Cash SA, formerly Prosegur Cit Holding SA, is a Spain-based company engaged in the provision of security services. The Company's activities are divided into three business areas: Logistics, Cash management and Outsourcing. The Logistics division focuses on the provision of local and international transport services of cash and other valuable goods. The Cash management division offers counting, processing, custody, preparation and delivery of notes and coins, as well as replenishment of automatic teller machines (ATMs). The Outsourcing division includes a number of support financial services, such as automation of retail operations through self-service cash automatization machines (MAEs), ATMs management, as well as branch forecasting, reconciliation, settlement and credit card support services. The Company operates through own branches and joint ventures in Europe, Central and South America, Africa, Asia and Australia. It operates through Contesta Teleservicios SAU.
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.