SRH AlsterResearch AG Update: Varta AG - VARTA will start production of cells for electromobility; PT up

VARTA AG

Industrial Goods & Services
MCap EUR 4.4bn

HOLD, PT EUR 138.00 (upside 7% - INTRADAY)
Varta AG_update

VARTA announced that it will also step into the ring to produce battery cells for electromobility in the future. We believe that today’s announcement is a logical and clever move of VARTA. Not only can the group leverage its outstanding technical expertise in the field of micro battery and energy storage for e.g. hearing aids or wireless headsets into bigger formats, it also helps VARTA to tap another multi-billioneuro market that is growing double digit. Still, valuation looks rich and upside on today’s intraday share price (c. EUR 129 at 1.50pm) limited, which is why we reiterate our HOLD recommendation albeit with slightly higher price target of EUR 138.00 (old EUR 130.00).

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