EUR 400.00 For Business Accounts Only

VISCOFAN: UNQUESTIONABLE LEADERSHIP ALREADY PRICED IN (ANÁLISIS BANCO SABADELL)

Unquestionable leadership already priced in. SELL.
VIS is the world’s leading company in the customised meat casings market (with a market share of ~36%), an industry with solid fundamentals that we expect to continue performing well (+4.5% CAGR’20-23 in EBITDA BS(e); ~6% FCF yield’20-23 BS(e) and +4% CAGR’20-23 dividend BS(e)). However, our T.P. of € 58.50/sh. (+5.5% vs. previous) yields no upside (+4% upside potential), and thus, we maintain SELL. Following the stock’s good performance this year (+22% in absolute terms and +50% vs. IBEX), VIS is trading at 11.4x EV/EBITDA’21, in line with its historical average (11.5x EV/EBITDA), with a +60% premium to Devro, which in our view already prices in the business’ brilliant outlook and low downside risk.