Séché Environnement: New tax credits (EUR5.2) and ests. changes (~EUR0.5) lead our FV EUR6 higher
BUY, Fair Value EUR37 vs. EUR31 (+25%)
Despite Séché Env.’s share price increase of ~16% since our upgrade to BUY on 23rd April (see Uncertainty over Saur removed; good Q1 trends), we reiterate our positive opinion and move our fair value up to EUR37 per share from EUR31. This results from: (i) factoring in the present value of the tax credits (EUR5.2/sh) linked with the provisioning of HIME-Saur’s convertible bonds (EUR5-6m cash in p.a.); and (ii) tweaked-up estimates (EBITDA increased 2.1% in average over the 2013-15 period), mainly due to the higher-than-expected 2012 basis (EUR~0.5/sh).
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