Brembo, analysts say the stock is underpriced: what happens now. And Pirelli…
For analysts of Akros Bank the market is undervaluing Brembo. A balance sheet with 300 million profits in 2023 and a first quarter of 2024 with over 300 million in turnover were not enough to convince us to focus further on the company Alberto Bombassei.
Today on the stock market the company, leader in the premium brake segment, which also supplies Formula 1 cars, is worth just over 3.65 billion. Not very much. But there are two fundamental issues to take into consideration.
The first is that Brembo is the absolute leader in high-end brakes, but it moves in a market where the competitors are giants like Bosch, which invoices around 100 billion per year. This boutique size guarantees being a “top” but at the same time does not allow further expansion. And we know how much the market appreciates M&A movements.
Second theme, which has been discussed for some time: the merger with Pirelli. Now that Marco Tronchetti Try it managed to regain leadership over Bicocca, ousting the Chinese who he had brought to Milan, we are once again talking about the future of the company. The synergies between Brembo and Pirelli would be obvious: the premium segment to which both are aimed; the creation of an Italian hub (even if Brembo has moved its headquarters to the Netherlands) for automotive components. There had already been some glances of understanding between Tronchetti and Bombassei in the past. Today Pirelli is worth around 5.6 billion on the stock market. It’s true that arithmetic doesn’t apply on the markets: but a giant with a capitalization of almost 10 billion, cutting edge and capable of attracting the attention of half the world would be a panacea for our country, which is increasingly impoverished from an industrial point of view. It will do? It’s hard to say now, but we should cheer.
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