Steinhoff - Stay on the leader!
All,
Please refer to our almost unchanged analysis here.
Ahead of tomorrow’s H1 update, Pepco’s Q2 results were somewhat behind our expectations, beginning with a slightly slower store roll-out and financially bot at sales level and at EBITDA. However, that still leaves Pepco on track for E400m of EBITDA this year, which should bode well for the share price from here - and consequently for the SEAG B2s and indirectly the SFH creditors. Fundamental news on Pepco are few, given we have only just had the IPO.
Meanwhile all eyes remain on tomorrow’s update and the grand settlement, which is again taking longer. As per previous notes however, we remain confident that the settlement will ultimately be achieved.
Positioning:
We remain long Steinhoff with two 6% positions in both, the SFH A1s and A2s - the former with a view to the settlement and the latter with a leveraged view to SEAG assets, which are altogether well placed in the re-opening trade.
Wolfgang
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E: wfelix@sarria.co.uk
T: +44 203 744 7003