Varta: Devastating prelim. Q3; EBITDA in the “reds”; PT & rating down – SELL
Varta released prelim. Q3 results significantly missing our and consensus already very pessimistic expectations.
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What's it all about ?
Varta released prelim. Q3 results significantly missing our and consensus already very pessimistic expectations. With its H1 results and in an ad-hoc end of September, Varta warned that severe headwinds are prevailing. Consequently, management abandoned its FY 22 guidance. Prelim. Q3 results however raises questions whether Varta’s current operating weakness simply mirrors a cyclical downturn (incl. inflationary and supply chain headwinds) or whether the era of high growth and high returns is finally over. In any case, we expect Varta to be loss making in 2022E and do not expect the company to earn its capital costs in the short to mid-term (eAR 23/24E: ROCE 8-10%). Trading on 2.2x P/B (2021) therefore still looks too expensive, in our view, which is why we downgrade from HOLD to SELL with new PT of EUR 19.00.
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Die Varta Aktie wird zum Zeitpunkt der Veröffentlichung der Nachricht mit einem Minus von -4,71 % und einem Kurs von 27,51EUR auf Tradegate (21. Oktober 2022, 12:04 Uhr) gehandelt.