Reassuring statement / new measures provide confidence; BUY

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What's it all about ?

S&T responded in a detailed statement to the allegations made by short seller Viceroy Research. In essence, S&T reiterated that the claims made are either not correct, not related to S&T or refer to incidents which lie more than 10 years in the past. Nonetheless, the company has initiated further steps in order to improve transparency such as commissioning an external forensic audit by Deloitte as well as implementing an independent Chief Compliance Officer on the Board of S&T. We highly welcome these steps as this should reinstate trust and confidence in S&T’s fundamental equity story. We therefore reiterate our BUY recommendation with unchanged PT of EUR 31.00 – upside 100% for the brave investor who is not deterred by short term bumpy news flow.