Varta AG: Restructuring program – it’ll get worse before it gets better; SELL

After a challenging FY22E, Varta announced that it is looking for measures to improve its operational and financial cost structure, including raising EUR 50m of fresh capital (~5%), discussions with its financing banks on far-reaching restructuring measures as well as the implementation of an operational restructuring program. In our view, a net debt/EBITDA ratio of 3.4x leaves little room for costly restructuring, especially given VARTA's growth initiatives in energy storage and large format lithium-ion cells. In addition, we see the restructuring as an acknowledgement that margins will remain subdued in the long term and that only cost savings can restore sufficient returns. We believe the situation is likely to get worse before it gets better, not least because of the expensive restructuring costs that lie ahead. We reiterate our recommendation to stay away from the stock.

Die vollständige Analyse ist abrufbar unter ResearchHUB

https://www.research-hub.de/disclaimer

 

 

Die Varta Aktie wird zum Zeitpunkt der Veröffentlichung der Nachricht mit einem Minus von -8,53 % und einem Kurs von 26,61EUR auf Tradegate (20. März 2023, 15:38 Uhr) gehandelt.