Exor : the cash collector
We initiate coverage of Exor with a Buy recommendation (30.6% upside potential).
Exor is a leading investment holding company controlled by the Agnelli/Elkann family, it is quite transparent as it is oriented towards large listed investments. It opts for a control/hands-on type of approach, being closely implicated in the management of its large assets through an active participation on the boards of directors and in decision-making.
It is currently present in the reinsurance business (PartnerRe, 100%), the automotive industry (FCA, 28.98%, and Ferrari, 22.91%), the agricultural and construction equipment business (CNH Industrial, 26.9%), publishing (The Economist Group, 43.4%) and professional football (Juventus Football Club, 63.77%)
Our key takeaways :
- Holding company controlling FCA, CNH, Ferrari through minority stakes and 100% of PartnerRe a reinsurer
- 70% of gross assets are listed, i.e. very easy to read
- Dividend RECEIVED were coming from PartnerRe historically but the Auto side is taking over (FCA special div on Magneti’s disposal)
- 34% discount to NAV is worth going for, much higher than similar family held biggish holding companies
- Not attractive in terms of yield though
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