RE: Automotive Valuation 30-50p20 Sep 2018 22:10
Wanting to repeat and reiterate the compelling extracts that S2020 kindly illustrated in previous posts and highlighted by SM s broker . . What's stirring and being mixed in the background?
Seems even the House Broker is speculating about a takeover...
Cenkos Extract 19/09/18
Automotive business could be worth 30-50p
We iterate our recently published view (4 July 2018 – Automotive DMS taking off) that the
Automotive business could be worth 30-50p at a moderate weighted average cost of capital of
10-13% which demonstrates the scale of the price to a potential strategic acquirer.
We also believe there is substantial valuation for the retrofit fleet (Guardian) business despite recent
challenges.
We continue to believe our longer term-forecasts are substantially undershooting the potential for this business as it is highly likely that the EC will also mandate a retrofit DMS product for public transport and the transition to a license model and the availability of the FOVIO chip gives great saleability.