In today’s briefing:
- Syngenta IPO: The Investment Case
- Cintas Corporation: Initiation of Coverage – Key Offerings & Recent Developments
- Dow Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- Eastman Chemical Company: Initiation of Coverage – Recent Acquisitions & Other Drivers
Syngenta IPO: The Investment Case
- Syngenta AG (SYNN SW), a world-class agribusiness, is seeking to raise US$9.5bn in Shanghai’s STAR market at a valuation of US$50bn. The Shanghai bourse will review the filing on 29-March.
- The business is in rude health with accelerating growth, market share gains, solid margins and cash generation. The IPO proceeds will help reduce leverage.
- A US$50 billion valuation is justifiable and implies a modest discount to peer multiples (including an AH premium). The IPO is worth a look.
Cintas Corporation: Initiation of Coverage – Key Offerings & Recent Developments
- This is our first report on Cintas Corporation, a specialized provider of uniform rental services.
- Its revenue increased 13.1% to $2.17 billion in the second quarter and each segment experienced double-digit revenue growth.
- The Uniform Rental and Facility Services operational segment’s revenue increased from $1.54 billion to $1.71 billion.
Dow Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Dow Inc., a behemoth in the global chemicals industry.
- The company proactively reduced operating rates to manage working capital, effectively implemented operational mitigation plans and cost-saving measures and lowered operating rates.
- In the Deer Park acrylic monomer plant in Performance Monomers, Dow anticipates higher scheduled maintenance turnaround costs in this segment.
Eastman Chemical Company: Initiation of Coverage – Recent Acquisitions & Other Drivers
- This is our first report on the renowned chemical industry giant, Eastman Chemical Company.
- The company delivered a highly disappointing set of results given the macroeconomic volatility.
- We initiate coverage on the stock of Eastman Chemical Company with a ‘Hold’ rating.
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