We believe that there is hidden value here as Zardoya Otis’ ROCE will remain above 30% (only a dozen of the 474 companies under AV coverage will post a higher figure in 2019). The company now controls about a quarter of the lifts in Spain. The growth in orders received and backlog bodes well for 2020 and beyond. Following this earnings report, we will not be changing our recommendation and will be maintaining a broadly similar target price.
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H1 19: poor communication is a shame as hidden value will emerge
- Published:
10 Aug 2019 -
Author:
Felix Brunotte -
Pages:
3
We believe that there is hidden value here as Zardoya Otis’ ROCE will remain above 30% (only a dozen of the 474 companies under AV coverage will post a higher figure in 2019). The company now controls about a quarter of the lifts in Spain. The growth in orders received and backlog bodes well for 2020 and beyond. Following this earnings report, we will not be changing our recommendation and will be maintaining a broadly similar target price.