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

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