Daetwyler: Credit Suisse starts with "outperform"

Daetwyler Holding

19/12/2019 08:27

** Credit Suisse initiates coverage of Swiss electronic
components supplier Daetwyler  DAE.S  with "outperform", saying
it sees upside potential for the company
    ** The broker sees Daetwyler as a future high-margin and
low-cyclical company, which has successfully converted its
portfolio to higher margins in recent years
    ** It says a divestment of the Technical Components (TeCo)
division, which is under review, would leave the company focused
on its higher-margin Sealing Solutions division and could push
average EBIT margins to above 18% from an estimated 12.5% in
2019
    ** "Despite the more cyclical automotive business and the
current investment in new plants in the US and India in
Healthcare, we expect 2019 to remain muted (at Sealing
Solutions) before growth regains traction next year," Credit
Suisse says
    ** It says, however, that the market may not expect
Daetwyler to divest TeCo, based on the company's history



 ((bartosz.dabrowski@tr.com))