AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Blackstone Resources

CR
Bloomberg   BLS SW
Batteries-Battery Sys  /  Switzerland  Web Site   |   Investors Relation
Banking on big-bang battery technology initiatives
Opinion change25/08/2020

Important battery R&D progress

Change in OpinionBuy vs Reduce

Change in Target PriceCHF 5.58 vs 3.23+72.8%

Even the relative valuation metrics benefited via addition of CATL (Chinese battery pioneer) as a peer.



Change in NAVCHF 11.8 vs 7.49+57.4%

Taking on board the R&D breakthrough in Battery, the division's EV/sales valuation multiple has been increased to 3x (vs. 1.5x earlier). Given that the full-potential across Blackstone’s respective divisions is still a couple of years away, the NAV is a better reflection of the underlying value at the firm.



Change in DCFCHF 3.64 vs 2.79+30.5%

While the near-term cash flow situation remains unchanged, the R&D progress in the strategically-important Battery division has resulted in all the out-year estimates (ex. EBITDA) being increased to 4% (vs. 3.5% earlier). EBITDA growth has been increased to 5.5% (vs. 4.5% earlier) – resulting in the long-term margin resetting close to 20%.



Target
Upside 350%
Price (CHF) 2.6
Market Cap (CHFM) 111
Perf. 1W: -6.47%
Perf. 1M: 0.00%
Perf. 3M: -12.8%
Perf Ytd: -9.09%
10 day relative perf. to stoxx600: 0.91%
20 day relative perf. to stoxx600: -2.03%
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