Concentric (COIC)

Concentric (COIC)

In this equity research report, analysts Felicity Jaarnek and Gustaf Tamm take a closer look at Concentric, a tier-one supplier that manufactures engine and hydraulic components for commercial vehicles and machines.
As the company leverages the rapidly expanding commercial EV market and maintains an average 7-year ROIC of 22.9%, organic revenue is projected to grow at a CAGR of 6.0%. The target price of SEK 221.4 is based on an equally weighted average between a DCF and a peer valuation and implies an upside of 25.1%.

Investment highlights:

  • Concentric is moving into the electrical components market.
  • The barriers to entry in the commercial EV market are being underestimated.
  • Concentric sets itself apart through its extensive track record of delivering quality and generating value.

Leave a Reply

Your email address will not be published. Required fields are marked *