Girc Winning Report 2011

Automobiles & Parts Politecnico di Milano Student Research This report is published for educational purposes only by students competing in the CFA Institute Research Challenge. Piaggio S.p.A. tribute: ? Accumulate set Target: ? € 2.65 Date 01.21.2011 Ticker: ?Bloomberg (Reuters)-PIA IM (PIA.MI) cost: ? € 2.40 Source: callers fiscal statements, PdM estimates Source: follows monetary statements, Bloomberg, PdM estimates Highlights ? We initiate coverage of Piaggio with an accumulate grade and an end-of-the year grade price of € 2.65, that continues a 10.42% upside from online stock price. Piaggio is the largest European manufacturer of two wheel beat back vehicles and one of the in the lead players in the Indian promiscuous Commercial Vehicles market. After the no-hit turnaround of its business, and the recent downturn of the European and the American economies, Piaggios main harvest driver has become product railway expansion in the acc livitous Markets of India and South-Eastern Asia. Piaggio bequeath grow revenues and blast metes on the wake of the growth exposure to Emerging Markets. launching into new-fangled ASEAN countries and launch of new products in India and Vietnam forget force out 6.8% consolidated make it business organisation growth in 2011 and 7.8% CAGR from 2010 to 2013.

EBITDA margin depart expand by 45bps in 2011 and by 165bps in 2013, withal because of efficiency improvements in European operations. Net financial heart is evaluate to improve. Supported by top line growth and margin expansion, Operating Cash Flow is expected to increase and OCF to sales ratio to rise from 8.86% in 2010 to 9 .82% in 2013. base on our estimates, Piaggi! os net financial position will fall from €342.9M in 2010 to €337.4M in 2011, and to €305.1M by 2013. This will cave in Piaggio with ample financial flexibility to expand the takings cogency and gain market share. Valuation. Our valuation methods lead to a bell ringer price of €2.65 by the end of 2011. We think Piaggio whitethorn offer long...If you want to get a full essay, launch it on our website: OrderEssay.net

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