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Alexander Aukner
  • Alexander Aukner

Benchmark Holdings Plc (Buy, TP: NOK7.00) - Divesting genetics busines...

Today Benchmark Holdings announced the sale of its genetics business to Novo Holding for a total potential consideration of GBP260m, equivalent to 17.9x EV/EBITDA – at 16% above our SOTP, we find this attractive. Following the transaction, the company will repay loans, focus on the remaining business and terminate its strategic review.

Alexander Aukner
  • Alexander Aukner

Benchmark Holdings Plc (Buy, TP: NOK7.00) - Safeguarding cash flow

Benchmark Holdings missed on the Q3 top line, but beat our forecast on EBITDA, driven by a higher margin from genetics. Health remains in a restructuring mode, but cut costs faster than we expected, reaching break-even EBITDA in Q3. The advanced nutrition end-market is guided to remain soft. The sales process is ongoing, with no firm guidance on the timeline. Despite cuts to near-term earnings estimates, we reiterate our BUY and NOK7 target price as we believe long-term value would be realised t...

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