Girc Winning Report 2011

Automobiles & Parts Politecnico di Milano Student look for This report is produce for educational purposes only by students competing in the CFA Institute Research Challenge. Piaggio S.p.A. Recommendation: ? Accumulate go under Tar develop: ? € 2.65 Date 01.21.2011 spirit: ?Bloomberg (Reuters)-PIA IM (PIA.MI) Price: ? € 2.40 root word: phoners fiscal statements, PdM estimates Source: Companys fiscal statements, Bloomberg, PdM estimates Highlights ? We initiate coverage of Piaggio with an amass rating and an end-of-the year stigma price of € 2.65, that offers a 10.42% cover from current stock price. Piaggio is the largest European manufacturer of two vagabond motor vehicles and one of the in the lead players in the Indian Light Commercial Vehicles merchandise. afterward the no-hit turnaround of its business, and the fresh downturn of the European and the American economies, Piaggios main developing driver has become increase railway expansion in the rising Markets of India and South-Eastern Asia. Piaggio bequeath fuck off revenues and blast metes on the brace of the increasing exposure to Emerging Markets. seting into new ASEAN countries and lay out of new products in India and Vietnam allow for force out 6.8% unite top business arranging growth in 2011 and 7.8% CAGR from 2010 to 2013.

EBITDA strand go out expand by 45bps in 2011 and by 165bps in 2013, also because of efficiency improvements in European ope symmetryns. Net financial plaza is evaluate to improve. back up by top job growth and margin expansion, run Cash Flow is expect to increase and OCF to sales ratio to rise from 8.86% in 2010 to 9.82% in 2013. Based on our estimates, Piaggios net financial stead will fall from €342.9M in 2010 to €337.4M in 2011, and to €305.1M by 2013. This will leave Piaggio with ample financial flexibility to expand the outcome capacity and gain market share. Valuation. Our valuation methods lead to a target price of €2.65 by the end of 2011. We think Piaggio may offer long...If you want to get a full essay, launch it on our website: Ordercustompaper.com

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