(CercleFinance.com) – The stock rose nearly 2% this morning after announcing the acquisition of Frittenwerk. This company is a chain of self-service restaurants in Germany (mainly in North Rhine-Westphalia). Following this announcement, Stifel confirmed its Hold advice on the stock with a target price of 180 Swiss francs.
Since its inception in 2014, the startup has grown to 27 locations, 12 of which were added during the covid-19 pandemic. Valora sees strong potential to grow the business and double the number of stores as well as triple current EBITDA by 2025 says analysts
“With this acquisition, Valora expands its restaurant business into the fast-growing fast casual market – a market that grew by an average of +9% between 2016 and 2019 and clearly exceeded expectations,” adds Stifel.
The analyst points out that in 2021, Frittenwerk generated 23 million euros in external revenue and 2.5 million euros in EBITDA. ‘Given a quota of 20% of franchisees, we estimate an EBITDA margin of around 12-13%’.
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