Groupe SEB: Conference Call Feedback: how WMF will transform Groupe SEB
BUY, Fair Value Under Review
Yesterday morning SEB’s management provided further details on WMF’s three divisions to better understand how they will drive sales and earnings momentum over the coming years. Despite a significant accretive impact (BG: +20%e on top line and ~15%e on EPS in 2017e), we understand that the business plan was built on conservative assumptions (+3-4% LFL, synergies of EUR40m/year from 2020). We will work on our new forecasts but our early estimates suggest there remains some upside potential, hence we keep our Buy recommendation.
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