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. passport: ? Accumulate set Target: ? € 2.65 Date 01.21.2011 Ticker: ?Bloomberg (Reuters)-PIA IM (PIA.MI) impairment: ? € 2.40 Source: callers fiscal statements, PdM estimates Source: alliances monetary statements, Bloomberg, PdM estimates Highlights ? We initiate coverage of Piaggio with an accumulate pass judgment and an end-of-the year grade price of € 2.65, that wisecracks a 10.42% upside from legitimate stock price. Piaggio is the largest European manufacturer of two wheel aim vehicles and one of the in the lead players in the Indian joyous 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-time number one wood has become product railw ay expansion in the emerging Markets of India and South-Eastern Asia. Piaggio bequeath grow revenues and blast metes on the wake of the increment exposure to Emerging Markets. launching into refreshing ASEAN countries and launch of new products in India and Vietnam allow force out 6.8% consolidated blanket business organisation growth in 2011 and 7.8% CAGR from 2010 to 2013.

EBITDA margin get away alone expand by 45bps in 2011 and by 165bps in 2013, also because of efficiency improvements in European operations. Net financial nub is evaluate to improve. Supported by top line growth and margin expansi on, Operating Cash Flow is expected to incre! ase and OCF to sales ratio to rise from 8.86% in 2010 to 9.82% in 2013. ground on our estimates, Piaggios net financial position 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 takings potentiality and gain market share. Valuation. Our valuation methods lead to a bottom 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: OrderCustomPaper.com

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