A few days ago Mutares made another acquisition. The engineering services division was acquired from the automotive supplier Valmet Automotive. The division generated sales of 56 million euros in 2019.
Yesterday, the company held a capital market day in Frankfurt, which could also be followed over the Internet. They want to expand the portfolio further. For the current year the company is planning a turnover of 40 million euros to 50 million euros. The pre-tax profit should be at least 20 million euros. The dividend should be EUR 1.00. This results in a return of almost 10 percent.
Annualized group revenues are expected to rise to 3 billion euros by 2023 and 1.8 billion euros in 2020. The profit should then be 60 million euros. A basic dividend of EUR 1.00 is planned, but this may increase due to performance. Exit proceeds play a role here.
The analysts at SMC Research are surprised at the announced rates of increase. They also like the robust earnings outlook for 2020.
As before, the analysts recommend buying Mutares shares. The price target so far was 17.00 euros. In the current study by the experts, it rises to EUR 20.00.
Mutares shares gained 0.2 percent in the afternoon to 11.12 euros.