Grifols
Note: This is a daily stock update and the information stands true as of 20/11/24, 09:00 CET.
Company Update:
Expert Opinion:
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Company Update:
The company rejected the takeover offer received from Brookfield at €10.5 per share (€6.45bn mkt cap) deeming the offer massively undervalued the firm’s long term potential.
We can only agree. We believe that on a standalone basis, the fair value of the company is substantially higher than the current share price (€10.34) and of the initial offer (€10.5).
In my analyst opinion, shareholder shouldn’t consider tending their shares below a €10bn valuation.
Expert Opinion:
Grifols offers attractive prospects. The plasma market is strong and the company keeps delivering. Concerns on the balance sheet are still existing but should be alleviated as the company keeps deleveraging thanks to asset disposal and cash flow generation. We believe there is no need of a capital increase on a standalone basis and therefore the current equity valuation is a bargain. I expect Brookfield, having done the work, will increase its bid to more palatable levels for both the board/management and the shareholders.
I see very little downside from here while upside is substantial. Still a buy in my opinion.
I see very little downside from here while upside is substantial. Still a buy in my opinion.
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