AlsterResearch AG Initiation: Vossloh AG - Re-rating is well underway

Vossloh AG (Initiation)   Industrial Goods & Services MCap EUR 800m BUY PT EUR 58.00 (+27% potential)   Vossloh has lost some 10% since Sept. which offers a fantastic entry opportunity in our view. Read why we believe that Vossloh will continue to grow its top and bottom line.   Read

 

What’s it all about?

We initiate coverage of Vossloh AG with a BUY recommendation and a PT of EUR 58.00 offering an upside potential of 27% after the stock has re-rated by nearly 10% since beginning of Sept. In the last 6 years, the Germany-based rail infrastructure company has undertaken a massive reorganization programme including the divestment of non-core rail vehicles (2015), electrical systems (2017) as well as its locomotive business (2020). With the acquired tie technology business (2017), Vossloh now focusses on the core rail infrastructure market, which we believe should allow for healthy top- and bottom-line growth in the future. An attractive valuation (8x EV/EBITDA 2022E) for a resilient and market leading business model coupled with an attractive ESG rating (Leeway score of 73/100), makes Vossloh an attractive BUYING opportunity.