SRH AlsterResearch AG Update: Fielmann AG - Solid start to 2021; Outlook a touch light; BUY

Fielmann AG (Update) Retail MCap EUR 5.3bn BUY, PT EUR 75.00 (18% potential) Research_update Fielmann posted solid Q1 2021 results, with the top line witnessing decent growth and profitability was up significantly. As part of its Vision 2025 strategy, it continues to expand in its core and growth markets as well as adjacent European markets. The company targets to operate more than 700 stores, sell 10m pairs of glasses per annum and generate EUR 2.1bn in sales in its core markets of Germany, Austria, Switzerland and Luxembourg. It also plans to enter new markets (including its expansion markets of Italy/Poland) through organic/inorganic routes and targets to sell 2.1m pairs of glasses and garner EUR 400m in sales each year. We maintain our BUY rating and price target of EUR 75.00, however notice that the outlook given by the company is a little light. For 5 current investment ideas, check our Weekly Screener. This week we are looking for companies that have the highest Return on Capital Employed (ROCE) Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de