PCAR - Iveco Group: This Year Seems Ugly Is It Time For M&A?
2024-02-15 17:11:44 ET
Summary
- Iveco Group has recovered and surpassed its 2022 IPO price of $10.51, with investors seeing gains of over 100%.
- The company reported strong financial results, with consolidated revenues up almost 13% YoY and an adj. EBIT margin of 5.8%.
- Iveco Group plans to recommend an annual cash dividend of €0.22 per common share and seek approval for a share buyback program.
- Iveco's high valuation could be an issue for investors.
Introduction
Iveco Group ( OTCPK:IVCGF ) has finally recovered and topped its 2022 IPO price of $10.51. Investors who received its shares after the spin-off from CNH Industrial ( CNHI ) and have held on to those shares had to wait two full years to be in the green. On the other side, those who jumped aboard when the share price was chopped in half around October 2022 are now sitting on 100+% gains. So, how should we consider the smallest among the main Western truck manufacturers? Is it the best pick within the industry? Is there still an upside? What could lead the stock higher?
To be transparent, Iveco has not been one of my best calls on SA. When I published my first article, I rated it as a sell . Since then, the stock is up 73%. In the meantime, I upgraded my rating to hold once I reviewed both CNH Industrial and Iveco a year after the spin-off. Leaving aside CNH Industrial, for now, Iveco showed improving signs in its profitability, where the company has always been the industry laggard ....
Iveco Group: This Year Seems Ugly, Is It Time For M&A?