LONDON, March 27, 2015 /PRNewswire/ --
Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of DeA Capital
Highlights of the analysis on DeA Capital by Edison's financial analysts Claudia von Türk Myers and Martyn King are as follows:
DeA Capital is an Italian alternative investment company. It has a direct investment portfolio currently valued at €220.5m (roughly €110m excluding the sale of the Migros stake), and investments in various funds (through the provision of seed capital) of €203m. It is in the process of exiting its direct investments in private equity. DeA Capital is also active in alternative asset management, managing €9bn in real estate funds for third parties and €1.5bn in private equity funds, of which €1.3bn is for third parties. In addition, it has a unit providing project and property management services.
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DeA Capital trades at a 17% premium to tangible NAV, but a 25% discount to stated NAV (including significant goodwill). Given its increased focus on asset management, we prefer a SOTP approach, which removes goodwill but values asset management on a P/E basis (13.0x 2015e). At €2.43 per share, this is similar to stated NAV, suggesting some investor caution on the value of the remaining investment portfolio. We note though that it is possible that investors will continue to apply some discount due to a still sizable fund investment portfolio, but we believe this is likely to progressively decline from the historical level.
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For more information please contact:
Claudia von Türk Myers
Edison Investment Research
+44(0)20-3077-5700
Martyn King
Edison Investment Research
+44(0)20-3077-5765
financials@edisongroup.com
