Evercore ISI Starts Versigent Ltd. (VGNT) at Outperform

Evercore ISI analyst Chris McNally initiates coverage on Versigent Ltd. (NYSE: VGNT) with a Outperform rating and a price target of $55.00.

The analyst comments "PM Summary – Versigent (former APTV “EDS” division) was spun/separated from the parent (April 1st) while initial distribution has certainly been harsher than we had previewed….calling on all Value/Spin Investing 101 students for why these “forced distribution/selling” opportunities perpetually reappear. We initiate Outperform ($55 target; +56% upside) based on the significant upside represented by the simple comp math of rerating to peers at ~7x ’27 EPS, 5.1x EV/EBITDA and/or ~9.0x FCF. We believe, over the next 12-18 months, VGNT, from its bottom ($27), will look eerily similar to the successful PHIN performance, post BWA spin (’23), which was >100% the following 24 months. Company Overview – Versigent designs & manufactures low voltage (“LV”) & high voltage (“HV”) electrical architectures/wiring which provide signal, power & data distribution for Auto & Industrial customers, the top 3 likely including GM, Ford, & Tesla. Rev growth will largely be production-based on low GoM (EVs; connected car) in the +1-2% range for total Rev growth targeted +3-4% CAGR through ’28. EBITDA margin upside guided +200bps expansion over that period. Mgmt includes CEO Joe Liotine (former EDS) & CFO Doug Ostermann (former STLA)."

For an analyst ratings summary and ratings history on Versigent Ltd. click here. For more ratings news on Versigent Ltd. click here.

Shares of Versigent Ltd. closed at $34.77 yesterday.

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