With shares up only marginally in the past 6M, CEM (at 3x EBITDA) missed the rerating of the EU heavyside and now trades at a c.50% discount vs sector. However, we think earnings should prove resilient, thanks to lower inflation and volumes not suffering as much as expected. We thus see room for a valuation catch-up, with the release of the 2023e-25e budget plan on Feb 8 being a key catalyst.
What''s new? Lower inflation gives relief in a softer demand scenario
2023 is likely to be shaped by tw ....
30 Jan 2023
Rebuilding confidence
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Rebuilding confidence
- Published:
30 Jan 2023 -
Author:
Baldelli Michele BM | Grimaldi Giuseppe GG -
Pages:
13
With shares up only marginally in the past 6M, CEM (at 3x EBITDA) missed the rerating of the EU heavyside and now trades at a c.50% discount vs sector. However, we think earnings should prove resilient, thanks to lower inflation and volumes not suffering as much as expected. We thus see room for a valuation catch-up, with the release of the 2023e-25e budget plan on Feb 8 being a key catalyst.
What''s new? Lower inflation gives relief in a softer demand scenario
2023 is likely to be shaped by tw ....