SRH AlsterResearch AG Initiation: Bechtle AG - Outpacing its industry – Initiate with BUY

Bechtle AG (initiation) Technology MCap EUR 6.8bn BUY, PT EUR 182.00 (upside 13%) Bechtle_update Bechtle reported solid operating results in 2020, with both top line and earnings before tax (EBT) meeting its guidance. The group benefitted greatly from its organic strength amid the challenging economic backdrop, reflecting its robust business model. Despite ongoing economic uncertainties, management remains optimistic of performing better than the industry in 2021 and expects its revenues to increase considerably (more than +5% yoy) and the EBT margin to remain at the high levels of 2020 (+4.7%). In 2030, the company targets a revenue of above EUR 10bn driven by organic growth and bolt-on acquisitions and an EBT margin of at least 5%. Due to its resilient business model and the growth perspectives driven by digitalization in Germany and Europe we initiate coverage with a DCF-base price target of EUR 182.00 and a BUY recommendation. For 5 current investment ideas, check our Weekly Screener Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de