- Despite BGOUF's stock rising by 66.4% on revenue growing by 11% YoY, an ailing product mix, large SSS growth declines and an inefficient cost base need to be remedied.
- The firm's "Getting Back in Black" plan will alleviate strains on FCF but their valuation looks precarious with the underlying concerns continuing to build (poor e-commerce platform and distribution inefficiencies).
- Cautiously downbeat on BGOUF stock: Valuation indicates a short position with a TP DKK 15.83, a 29% discount on current share of DKK 19.97.
- Despite the ominous outlook, BGOUF has the potential to be valuable for investors if realized cost reductions are reinvented to drive growth occurs or touted LBO takes shape.
For further details see:
Bang & Olufsen's Long Road Ahead, Despite The Surge In Shares