Cevian Says Rexel May Have 50% Upside on Improved Margin
By Veronica Ek and Niclas Rolander
(Bloomberg) -- Rexel’s share price has about 50% upside if co. realizes its margin potential, Cevian co-founder Christer Gardell says in interview in Stockholm.
Says that “with a new CEO and a strengthened board we believe that Rexel, with the position it has, should be able to strengthen earnings”
Rexel reported an adjusted Ebita margin of 4.0% in 3Q; Gardell says “we believe that it has the capacity to reach 5.5% to 6%”
Gardell says he has full confidence in current board and management, and that work ahead is more about improving profitability than any structural actions
“It’s a question of hard work, turning every stone. There’s no Gordian knot to be cut, but we believe that the risk is low and the share potential is significant”
NOTE: Cevian is Rexel’s largest shareholder, with ~10.5% of shares
NOTE: Oct. 28: Rexel Creates New Executive Committee as Outlook Scaled Back