DeZwarteRidder schreef op 15 september 2019 13:29:
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Group: Significant Upside With Strong Downside Support
Top Idea|
Sep. 13, 2019 11:30 AM ET|
About: AMG Advanced Metallurgical Group N.V.
Robbe Delaet
Growth, growth at reasonable price, contrarian
(62 followers)
Summary
AMG stock went down drastically due to temporary declining earnings in the Critical Materials division (vanadium and lithium) and Technologies division (primarily aerospace subcontractor).
AMG is significantly undervalued today as AMG Technologies solely should be valued at $20.50 (9x EV/EBITDA multiple), while share price is $21.60 as of 09/03/19.
In a 5-year time span, I see 233% upside (target of $71.96) based on a sum of the parts EV/EBITDA valuation for AMG's two divisions.
I see only a small amount of downside risk due to the separate listing of the undervalued Technologies business expected in H1 2020. This spin-off should create much shareholder value.
AMG is listed in the Netherlands, but reports its figures in USD. Thus, all financial figures and stock prices included in this article are in “$” currency unless otherwise stated. Downside and upside numbers