Kepler Cheuvreux starts Ayvens SA stock at Buy, citing undervaluation and market leadership

Published 26/09/2024, 17:28
Kepler Cheuvreux starts Ayvens SA stock at Buy, citing undervaluation and market leadership


On Thursday, Kepler Cheuvreux initiated coverage on Ayvens SA (ALD:FP), a leading multi-brand global mobility services provider, with a Buy rating and a price target of EUR9.50. The firm highlighted Ayvens' strong market position, managing a fleet of 3.4 million cars, 80% of which are owned and leased to a diverse clientele.

The company's stock is currently trading at a significant discount compared to its peers. This is attributed to challenges following a merger between ALD and LeasePlan, as well as depreciating residual values in the battery electric vehicle (BEV) sector. Kepler Cheuvreux believes these risks are now reflected in the stock's price and well understood by the market.

Ayvens SA's leadership in a low-risk and profitable sector is notable, despite the obstacles it has faced. The company leases its substantial fleet to both corporate and individual clients, ensuring a broad base of revenue. The analyst from Kepler Cheuvreux expressed confidence in Ayvens' ability to navigate past its initial post-merger difficulties.

The price target of EUR9.50 set by Kepler Cheuvreux suggests a potential upside for investors. This target is based on the firm's assessment of Ayvens' valuation in relation to industry peers and the perceived mitigation of earlier risks.

In conclusion, Kepler Cheuvreux's initiation of coverage on Ayvens SA with a Buy rating reflects their positive outlook on the company's future performance. The firm anticipates that Ayvens' stock will recover from its current undervaluation as it overcomes merger-related challenges and adapts to market conditions in the BEV space.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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