EVENTS:   Best Equity Short Ideas Conference Call 12 - Zach Shannon/Corto Capital Advisors & Craig Huber/Huber Research Partners & Thomas Beevers /Forensic Alpha & Ed Steele/Iron Blue Financials & Bill Campbell/Paragon Intel - 12 Nov 25   Will AI Deflate the World? Macro Lessons from Three Industrial Revolutions and China - Manoj Pradhan/Talking Heads Macro - 13 Nov 25     ROADSHOWS: Forest Products Sector Equity and Commodity Research With Expertise in Distressed Debt - Kevin Mason /ERA Research   •   London   12 - 14 Nov 25       Buyside to Buyside Forum and Expert Calls across TMT, Consumer, Healthcare and Fintech - Andrew Peters /Revelare Partners   •   London   17 - 19 Nov 25       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   17 - 19 Nov 25      

Fortnightly Publication Highlighting Latest Insights From IRF Providers

Company Research

Aalberts (AALB NA) Netherlands

Industrials

the IDEA!

Is the business model broken? Analysts at the IDEA! don't think so. The company's clear underperformance against the stock indices is driven by its lacklustre FCF generation that is largely caused by its working capital development or to be more precise by its inventories. When AALB can make real progress getting better control over its inventories / working capital (first signs are already visible) it should be able to recoup most of the lost FCF. the IDEA! models FCF of c.€1.2bn (excl. lease payments) in the period 2023 to 2025. TP €50.15 (~40% upside).

Edition: 169

- 15 September, 2023