Cnh, this is how Iveco turns upside down on the stock market
First day on the Milan stock exchange for Iveco, a company spun off from CNH but still under the control of the Exor group. Here are facts, numbers and predictions
Today was the first day of listing on the Milan Stock Exchange for Iveco, the manufacturer of industrial vehicles and buses that was recently spun off from Cnh Industrial, a former parent company in turn controlled by the Exor group of the Agnelli family.
THE IVECO-CNH SEPARATION
On December 31st, CNH and Iveco signed the demerger deed: it was announced in 2019 and entered into force on January 1st.
According to the new organization, CNH maintains the segment of agricultural and construction machinery. Iveco, on the other hand, will collect the divisions on commercial and military vehicles, buses, powertrain components and related financial assets (for example the stake in the American startup Nikola ).
The Exor group remains the majority shareholder of both CNH and Iveco.
HOW THE FIRST DAY ON THE STOCK EXCHANGE WENT
Now that they have separated, both CNH and Iveco are listed on the Milan Stock Exchange and on the Euronext Milan market.
Iveco failed to make a price at the opening. It started trading at € 11.26, but stopped several times in the volatility auction. The stock returned to trading at € 10.3 per share, losing about 10%,
Borsa Italiana, the company that manages the Italian financial market, has announced that the adjusted reference prices of CNH and Iveco are 14.84 euros and 11.12 euros, respectively.
THE ESTIMATES OF AKROS AND INTESA SANPAOLO
The position of Banca Akros on CNH, cited by Milano Finanza , is positive: the buy rating was maintained but the target price revised to 16.6 euros, against the previous one of 20.5 euros. The institute's analysts think that the value of Iveco's stock could come under downward pressure as shareholders are likely to sell the company's shares to retain those of CNH.
Intesa Sanpaolo also does not rule out volatility on Iveco in the coming days due to the favor that the market could reserve for CNH in the short term. The bank's rating is in any case buy and the target price is 18.2 euros.
IVECO'S OBJECTIVES TO 2026
The CEO of the company spun off from CNH, Gerrit Marx, presented the financial objectives of the company by 2026: revenues of 16.5-17.5 billion euros (in 2019 the aggregate value amounted to 11.8 billion); margins of 5-6 per cent (compared to 3.6 in 2019); net profit of 800 million (compared to 300 million in 2019).
CNH Industrial will present its new plan on February 22nd.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/iveco-cnh-borsa/ on Mon, 03 Jan 2022 14:25:25 +0000.