ACG AG CHIPK.INFO.SYS. [ WKN: 500770
ACG - Kaufen
ACG AG CHIPK.INFO.SYS. HSBC Trinkaus & Burkhardt 02.11.2000
ACG – Kaufen
Die Analysten von HSBC Trinkaus & Burkhardt raten zum Kauf der ACG –Aktien, Kursziel: 100€.
ACG: Acquisition of Freeway Electronics Group
(Current/target price: EUR64/EUR100)
* First major step into the UK with the eighth acquisition this year
* High profitable chip broker Freeway Electronics Group (EBITDA margin: 10%)
* Stock remains a Buy—target price EUR100
ACG acquired 100% of the UK chip broker Freeway Electronics Group. The company has major clients like Nortel, Compaq, Ericsson and concentrates on the high margin excess inventory management. This should strengthenthe already promising ACG excess inventory management division. The undisclosed purchase price will be paid in shares (77%) and cash (23%). The company did not publish the total amount, but we guess that it will be around EUR50m (1x sales 2000e). For a profitable broker (EBITDA margin 10%, EBIT will be roughly the same, 4x EBITDA 2000e) and a sales growth of approximately 50% in 2001, this is a good price.
We like the acquisition because after the entry into the French market (acquisition of ATC) this is the next logical step to enhance the market position on the European market. Germany, France and the UK are the three European core markets for chip brokerage. Beside new clients and volume, the knowhow in logistics and the eBrokerage software of Freeway was one reason for the acquisition. ACG hopes to improve its logistics and the management of its own eBrokerage software in the field of databases. In conjunction with the Q3 figures and a forthcoming meeting with the management we will upgrade our forecasts. Hence also excluding the Freeway acquisition the stock is undervalued with 1.4 EV/Sales 2001e (sector mean: 3.9). The company is slightly profitable on the EBITDA (margin:4.3%) and EBIT (margin:1.6%) level. By means of the good newsflow and the valuation excluding Freeway, we rate the stock still as a Buy—target price EUR100.
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