Bite-Sized Consolidation
In this note we review the valuation, strategic rationale and cash positions of various assets which we have identified as ‘non-core’ or underperforming within our coverage, the combined value of which is >€10bn. While some of these assets have been hanging around a while, we believe the current environment is conducive to progress; we also review the balance sheet optionality of the parent companies herein. Our analysis reaffirms our positive view on Thales (OW PT €60), our BAE Systems UW (PT430p) and we revisit Finmeccanica (EW PT €12) in detail post the sale of Transport, taking a deep dive into the embedded value of the ‘Industrial Plan’.