In today’s briefing:
- Japanese Airlines – ANA’s Margin Outperformance Poses Big Questions for JAL
- Angel Robotics: IPO Preview
- Forward Air (FWRD US | BUY | TP:USD59.5): A Toad, but There Is a Prince Inside
Japanese Airlines – ANA’s Margin Outperformance Poses Big Questions for JAL
- We refresh estimates for ANA and JAL, and highlight we think the strength of FY24 makes it difficult for ANA to avoid an earnings decline in FY25.
- However, ANA’s superior recovery to JAL poses bigger questions for JAL as it revisits its medium term plan on 21 March
- Our deep dive on margin management at each carrier suggests a revenue problem rather than a cost problem at JAL; but without revenue improvements, it will have to cut costs
Angel Robotics: IPO Preview
- Angel Robotics is getting ready to complete its IPO in KOSDAQ in March. The IPO price range is from 11,000 won to 15,000 won.
- The IPO offering amount is from 17.6 billion won to 24 billion won. At the IPO price range, the company’s valuation ranges from 154 billion won to 210 billion won.
- Angel Robotics is likely to be compared to Doosan Robotics and Rainbow Robotics.
Forward Air (FWRD US | BUY | TP:USD59.5): A Toad, but There Is a Prince Inside
- A highly unpopular acquisition driving investors and sell-side analysts up the wall. Forward Air is OVERSOLD on almost all technical indicators and valuations are the lowest in its history
- Our analysis suggests it is not all that bad, the business will still be profitable and generate positive free cash flow
- Our fair value of USD59.50 (+97% UPSIDE) is derived by 2x current Book Value. A potential double-bagger, will be rewarding for the patient investors
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